- The Australian dollar is carried out by losses after the Popular Bank of China reduced the loan for one year to 3.00 % of 3.10 %.
- The Australian Reserve Bank is expected to reduce interest rates by 25 basis points on Tuesday.
- The weakest US dollar after reducing the USA’s credit rating from AAA to AA1.
The Australian dollar (AUD) fell against the US dollar (USD) on Tuesday, after winning more than 0.50 % in the previous session. The AUD/USD pair remains under pressure after the Popular Bank of China (PBOC) announced the interest rate decision. PBOC announced a decrease in the prices of major loans (LPRS) on Tuesday. LPR has been reduced for one year from 3.10 % to 3.00 %, while LPR has been reduced for five years from 3.60 % to 3.50 %. Looking at the close commercial relationship between Australia and China, any change in Chinese markets can significantly affect Australian dollar.
The Australian dollar continues to be weak due to the escalation of political turmoil in Australia. The opposition alliance coalition after the National Party withdrew from its alliance with the liberal party. Meanwhile, the ruling Labor Party has returned to power with a stronger and wider authorization, and to benefit from chaos in the opposition.
The market interest is now to the next average decision at the Australian Reserve Bank (RBA) scheduled later in the day. The central bank is expected to reduce interest rates by 25 basis points, after the strongest recruitment data from last week.
The AUD/USD pair is strengthened on Monday US dollar In the wake of MOODY categories, it was weakened by the American credit rating from AAA to AA1. This step is in line with similar discounts through Fitch classifications in 2023 and Standard & Poor’s in 2011. gross domestic product. This deterioration is due to the high costs of debt service, the expansion of entitlement programs, and a decrease in tax revenues.
In addition, the Australian dollar sensitive risks won support from renewed optimism surrounding the American -Chinese commercial affection for 90 days and hopes for making more commercial deals with other countries. Meanwhile, US Treasury Secretary Scott Pessant told CNN on Sunday that President Donald Trump intends to implement definitions on the previous threatened levels of commercial partners who do not participate in negotiations “in good faith.”
The Australian dollar decreases despite the weakness of the US dollar amid nutrition
- The US dollar index (DXY), which tracks the US dollar (USD) for a basket of six main currencies, remains defeated and trades at about 100.40 at the time of writing this report.
- The economic data issued last week indicated the reduction of inflation, as the Consumer Prices Index (CPI) and the product price index (PPI) indicated a slowdown in price pressures. This has increased expectations that the Federal Reserve may implement additional price cuts in 2025, which contributes to more weakness in the US dollar. In addition, disappointing American retail numbers have been deeper for a long period of slow economic growth.
- US President Donald Trump Fox News told that he is working to reach China more, describing the relationship as excellent and expressing its willingness to negotiate directly with President Xi in a possible deal.
- The Trump administration plans to add many Chinese chip makers to its black export list, known as the “entity list”. According to the Financial Times, Trump administration officials expressed their concern late Thursday that imposing export controls on major Chinese companies at this stage could undermine the recently reached trade agreement between China and the United States during talks in Geneva during the weekend.
- The National Bureau of Statistics (NBS) reported on Monday that retail sales in China increased by 5.1 % on an annual basis (YO) in April, retracted 5.5 % expectations and decreased from 5.9 % in March. Industrial production grew by 6.1 % on an annual basis during the same period, with overcoming the expected 5.5 %, but the slowdown of the previous 7.7 % growth.
- According to the Australian Statistics Office (ABS), labor increased by 89,000 in April, which is much higher than the 36,400 increase in March and more than 20,000 expected. Meanwhile, the unemployment rate remained unchanged at 4.1 %.
- The seasonal wage price index in Australia increased by 3.4 % on an annual basis in the first quarter of 2025, an increase of an increase of 3.2 % in the first quarter of 2024 and exceeding the market expectations by 3.2 %. This represents a recovery from the previous quarter, which recorded the slowest growth of wages since Q3 2022. On a quarterly basis, the index increased by 0.9 % in the first quarter, exceeding 0.8 %.
The Australian dollar hovers about 0.6450, and support appears in nine days
AUD/USD is trading near 0.6450 on Tuesday, with technical indicators on the daily chart that indicates an upper bias. The pair remains higher than the SIA moving average for nine days (EMA), while the 24 -day relative indicator (RSI) exceeds the brand 50, indicating the continuation of the bullish momentum.
On the upper side, the immediate resistance is six months altitude at 0.6515, published on December 2, 2024. It can open a continuous break above this door to the highest level in seven months at 0.6687 November 2024.
Initial support appears in EMA for nine days from 0.6429, followed by EMA for 50 days about 0.6363. The clear decline is likely to weaken the short to medium to medium, which may lead to a deeper decrease towards the lowest level in March 2020 at 0.5914.
Aud/USD: Daily Chart
Australian dollar price today
The table below shows the percentage of change in the Australian dollar (AUD) against the main currencies listed today. The Australian dollar was the weakest against the Swiss franc.
| US dollar | euro | GBP | JPY | CAD | Aud | Nzd | Chf | |
|---|---|---|---|---|---|---|---|---|
| US dollar | 0.05 % | 0.02 % | 0.03 % | 0.10 % | 0.24 % | 0.18 % | -0.03 % | |
| euro | -05 % | -02 % | -02 % | 0.06 % | 0.20 % | 0.14 % | -08 % | |
| GBP | -02 % | 0.02 % | 0.02 % | 0.08 % | 0.19 % | 0.18 % | -02 % | |
| JPY | -0.03 % | 0.02 % | -02 % | 0.06 % | 0.19 % | 0.13 % | -02 % | |
| CAD | -0.10 % | -06 % | -08 % | -06 % | 0.13 % | 0.07 % | -0.10 % | |
| Aud | -0.24 % | -0.20 % | -0.19 % | -0.19 % | -0.13 % | -06 % | -0.24 % | |
| Nzd | -18 % | -0.14 % | -18 % | -0.13 % | -07 % | 0.06 % | -18 % | |
| Chf | 0.03 % | 0.08 % | 0.02 % | 0.02 % | 0.10 % | 0.24 % | 0.18 % |
The heat map shows the percentage changes in the main currencies against each other. The basic currency is chosen from the left column, while the quotation currency is chosen from the top row. For example, if you choose the Australian dollar from the left column and move along the horizontal line to the US dollar, the percentage offered in the box will represent AUD (Base)/USD (Quote).
Questions and answers in Australian dollars
One of the most important factors for the Australian dollar (AUD) is the level of interest rates set by the Australian Reserve Bank (RBA). Since Australia is a resource -rich country, the other main engine is the largest export price, iron ore. The health of the Chinese economy, the largest commercial partner, is a factor, as well as inflation in Australia, the rate of growth and commercial balance. Market morale-whether investors are eating more risky assets (risk) or searching for safe materials (risk)-is also a worker, with positive risks for AUD.
The Australian Reserve Bank (RBA) affects the Australian dollar (AUD) by determining the level of interest rates that Australian banks can persuade each other. This affects the level of interest rates in the economy as a whole. The main goal of RBA is to maintain a stable inflation rate of 2-3 % by setting interest rates up or down. Relatively high interest rates are supported compared to other main central banks, and relatively low vice versa. RBA can also use and tighten quantitative dilution to influence credit conditions, with previous AUD negative and positive to AUD.
China is the largest commercial partner in Australia, so the health of the Chinese economy is a major impact on the value of the Australian dollar (AUD). When the Chinese economy does a good job, it buys more raw materials, commodities and services from Australia, raising the demand for AUD, and raising its value. The opposite is the case when the Chinese economy does not grow at the speed available. Positive or negative surprises in Chinese growth data, therefore, they often have a direct impact on the Australian dollar and its wives.
Iron Ore is the largest export in Australia, as it represents 118 billion dollars annually according to data from 2021, with China as its main destination. Therefore, the price of iron ore can be an engine for the Australian dollar. In general, if the price of iron ore rises, the AUD also rises, as the total demand for the currency increases. The opposite is the case if the price of iron ore decreases. Iron ore prices also tend to increase the possibility of a positive commercial balance for Australia, which is also positive for AUD.
The commercial balance, which is the difference between what a country earns from its exports in exchange for what it pays for its imports is another factor that can affect the value of the Australian dollar. If Australia produces very required after exports, its currency will obtain a value of the excess demand created from foreign buyers who seek to buy its exports in exchange for what it spends on buying imports. Therefore, the positive net trade balance enhances AUD, with the opposite effect if the trade balance is negative.
