The Australian dollar (AUD) continued its gains against the US dollar (USD) on Monday (14/4), supported by improving risk sentiment. The AUD/USD pair strengthened after US President Donald Trump announced less stringent tariffs on Chinese imports, including semiconductors and electronics, on Sunday night. Clarifying earlier speculation about exemptions, Trump confirmed these goods would remain subject to the existing 20% ​​tariffs on fentanyl, instead of the previously suggested 145% tariff.

Stronger commodity prices provided further support for the Australian dollar. However, persistent trade tensions between the US and China continue to weigh on the outlook, especially given Australia's heavy reliance on Chinese demand and exports.

China's March Trade Balance, measured in Chinese Yuan (CNY), posted a substantial increase to CNY 736.72 billion, up sharply from CNY 122 billion in the previous month. In US Dollar (USD) terms, the trade surplus also beat expectations, reaching $102.6 billion—well above the $77 billion forecast, though lower than the previous estimate of $170.51 billion.

China's General Administration of Customs acknowledged the challenges facing the country's exports, calling the current external environment "complex and severe." Nonetheless, officials expressed confidence, stating that "the sky will not fall." They reported a solid start to the year, with foreign trade showing growth in both volume and quality. The agency also stressed China's commitment to taking all necessary measures to counter US actions and to uphold its sovereignty and national security. (Newsmaker23)

Source: FXstreet