The Australian Dollar (AUD) extends its gains against the US Dollar (USD) on Tuesday. The AUD/USD pair appreciates as investor sentiment took a hit following renewed criticism from US President Donald Trump directed at Federal Reserve (Fed) Chair Jerome Powell, raising fresh concerns about the Fed's independence.

White House economic advisor Kevin Hassett said on Friday that Trump is exploring whether he has the authority to dismiss Powell. Trump also warned in a Truth Social post that the economy could slow down unless Powell acts swiftly to lower interest rates.

Adding to the market jitters was the ongoing deadlock in global trade negotiations. China has remained firm in the face of Trump's aggressive tariff strategy, further weighing on investor confidence.

Nonetheless, tensions remained as the White House imposed tariffs on Chinese ships docking at US ports, risking disruption to global shipping routes. However, late Thursday, Trump noted that China had made several overtures and stated, "I don't want to go higher on China tariffs. If China tariffs go higher, people won't buy." He also expressed optimism that a trade deal could be reached within three to four weeks.
Australia's Unemployment Rate rose to 4.1% in March, slightly below the market forecast of 4.2%. Meanwhile, Employment Change came in at 32.2K, against the consensus forecast of 40K.
Australia's Westpac Leading Index's six-month annualised growth rate, which forecasts economic momentum relative to the trend over the next three to nine months, eased to 0.6% in March from 0.9% in February.
Reserve Bank of Australia's (RBA) March 31–April 1 Meeting Minutes indicated ongoing uncertainty around the timing of the next interest rate adjustment. Although the Board considered the May meeting a suitable point to review monetary policy, it stressed that no decisions had been made in advance. The Board also pointed to both upside and downside risks facing Australia's economy and inflation trajectory.

Source; Fxstreet