- Trump repeats the tariff threats on Mexico, Canada and China.
- FED maintains a cautious position on inflation risk, and retaining rates are fixed.
- AUD/USD hovers near 0.6215 amid RBA bets to reduce bets and economic slowdown in China.
Aud/USD pair is trading slightly higher at 0.6215 in the Asian session on Friday, but he is still under pressure due to the fresh tariff threats by US President Trump. Market participants continue to expect a incentive from the Australian Reserve Bank (RBA) in February, adding to the risks of the Australian side.
Trade tensions weigh feelings
Trump reaffirmed plans to impose a tariff on Mexico, Canada and China, nourishing the demand for the safe term on the US dollar and demanding planning to impose a 100 % tariff on the BRICS countries if they tried to replace the US dollar (USD) with a new currency in international trade. Trump has published facts on facts: “We will need a commitment from these countries that seem hostile to not creating a new BRICS, and no other currency to replace the great US dollar or will face a 100 % tariff,
On the data interface, the US Personal Consumption Price Index in the United States (PCE) increased by 0.2 % on the basis of the month as expected, while the essential PCE remained annual unchanged by 2.8 %. Federal reserve officials, including Governor Michel Bowman, warned of the risks of continuous upward inflation, which enhances expectations that price cuts may be delayed.
In Australia, it strengthened the latest expectations that RBA will burn policy. The Q4 inflation numbers came in less than expected, with a average consumer price index reduced to 3.2 %, less than the previous 3.4 % previous RBA forecast. Traders are now fully pricing in a 25-basis rate at the February meeting.
Technical
AUD/USD is still linked in the range, and it lacks a strong directional momentum. RSI is in 47, still in negative lands but recovery. The MACD chart shows the reduction of green tapes, indicating a faded clouds.
An immediate resistance is seen at 0.6230 on a simple 20 -day moving average (SMA). On the negative side, the main support lies at 0.6200, with a decrease in the door opening for a further decrease of about 0.6170. Until a decisive step occurs, it is possible that the husband is likely to integrate into the current range.
