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Australian Dollar Falls, Downside Seems Limited Amid Market Caution Ahead US NFP
Friday, 6 June 2025 10:40 WIB | AUD/USD |AUD/USD,AussieDolar

The AUD/USD pair is trading around 0.6510 on Friday. The Australian Dollar (AUD) declines against the US Dollar (USD). The AUD/USD pair may remain stable amid market caution, as traders await the upcoming US Nonfarm Payrolls (NFP) report, due later in the day, seeking fresh insights into the United States (US) economy.

Market sentiment improved following a productive phone call between US President Donald Trump and Chinese President Xi Jinping. Trump expressed that the call was productive and prepared to continue tariff negotiations. However, Trump and his team struggled to stay composed with Chinese trade officials. It is essential to note that any changes in the Chinese economy could impact the AUD, as China and Australia are close trade partners.

Reserve Bank of Australia (RBA) Minutes of its May meeting suggested that the policymakers viewed the case for a 25 basis point cut as stronger, preferring a policy to be cautious and predictable. RBA Assistant Governor Sarah Hunter expressed caution on Tuesday that "higher US tariffs will put a drag on the global economy," and warned that higher uncertainty could dampen investment, output, and employment in Australia.

Source: FXStreet

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