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AUD/USD Strengthens As Traders Digest The Latest Tariff Headlines And Fed Meeting Minutes
Thursday, 10 July 2025 04:52 WIB | AUD/USD |AUD/USD,

The Australian Dollar (AUD) traded within a well-defined range against the US Dollar (USD) on Wednesday (July 9th), as markets digested the latest Fed Meeting Minutes and tariff-related headlines.

Although tariffs are set to take effect in August, lingering trade uncertainty continues to weigh on the US Dollar. The latest tariff letters were sent to countries including Libya, Iraq, and the Philippines on Wednesday.

At the time of writing, AUD/USD was trading around 0.6540, with strong resistance at 0.6550.

The minutes of the June Federal Open Market Committee (FOMC) meeting revealed that most policymakers remained cautious about lowering interest rates prematurely. However, many also acknowledged the potential for tariffs to exacerbate inflationary pressures.

On Tuesday, President Trump called for the immediate resignation of Fed Chairman Powell, urging his replacement with someone more inclined to cut interest rates. Speaking at the White House on Wednesday, Trump reiterated his position, stating that the US should have the "lowest interest rates in the world."

Despite the political rhetoric, the CME FedWatch Tool continues to reflect expectations of a September interest rate cut. With this projection largely priced in, AUD/USD showed little reaction to the Fed's report. (alg)

Source: FXstreet

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