The Australian Dollar (AUD) traded lower against the US Dollar (USD), ending a six-day winning streak. The AUD/USD pair remained pressured after the release of Australian jobs data on Thursday (4/17), which showed the Unemployment Rate rose to 4.1% in March, slightly below market estimates of 4.2%. Meanwhile, the Employment Change came in at 32.2K, compared to consensus estimates of 40K.

The AUD gained support from improved global risk sentiment after US President Donald Trump announced exemptions for key technology products from newly proposed "reciprocal" tariffs. The exemptions, which cover smartphones, computers, semiconductors, solar cells and flat-panel displays, largely benefit goods manufactured in China, Australia's largest trading partner and a major buyer of its commodities.

The market remained cautious amid ongoing uncertainty surrounding US trade policy. The Trump administration is now considering tariffs on semiconductor and pharmaceutical imports. On the domestic front, the Reserve Bank of Australia's (RBA) April Policy Meeting Minutes hinted at uncertainty about the timing of the next interest rate adjustment.

While the RBA hinted that the May meeting could be a good time to reassess monetary policy, no firm decision has been made. Markets are currently pricing in a 25 basis point rate cut in May, with expectations of around 120 basis points of easing over the next year. Attention now turns to Thursday's jobs report, which could provide key insights into the labor market and guide the RBA's next policy move. (Newsmaker23)

Source: FXstreet