The Australian Dollar (AUD) remains steady on Thursday following two consecutive days of losses. The AUD/USD pair could see gains as the US Dollar (USD) faces pressure after the Federal Reserve's (Fed) Beige Book suggested weakening economic conditions.

According to the Fed's April Beige Book, concerns over tariffs have worsened the economic outlook across several regions in the United States (US). Consumer spending presented a mixed picture, while the labor market showed signs of softening, with many districts reporting flat or slightly declining employment levels.

Westpac anticipates that the Reserve Bank of Australia (RBA) will cut interest rates by 25 basis points at its May 20 meeting. In recent quarters, the RBA's policy decisions have been heavily data-dependent, making it challenging to project the Board's actions beyond the upcoming meeting with certainty.

US President Donald Trump stated that it's up to China how soon tariffs can be reduced. Trump mentioned that the US will determine the tariff rates for China over the next two to three weeks. "If we don't reach a deal, we're simply setting the price — then it's up to them to decide if they want to proceed," he said. He also noted that China currently isn't doing any business with the US, adding that the tariff rate remains at 145%. However, National Economic Council Director Hassett said on Wednesday that a full China-US trade deal could take 2-3 years.

The preliminary data from Australia's Judo Bank on Wednesday showed that private sector activity grew for the seventh straight month in April, supported by continued expansion in both manufacturing and services.

Source: Fxstreet