- The Australian dollar maintains its site after issuing mixed economic data on Wednesday.
- The GDP in Australia expanded 0.2 % of QOQ in the first quarter, compared to the growth of the previous 0.6 %.
- The US dollar faces challenges because the uncertainty in the customs tariff may harm the growth in the American economy.
The Australian dollar (AUD) is estimated US dollar (USD) on Wednesday after registering more than 0.5 % losses in the previous session. The AUD/USD pair remains in a positive area after issuing mixed economic data from Australia.
The Australian Statistical Office (ABS) showed that GDP (GDP) grew by 0.2 % quarter of a quarter in the first quarter, and decreased from the previous growth by 0.6 %. The Australian economy has fallen from the expected increase of 0.4 %. At the same time, the annual gross domestic product The growth rate remains consistent at 1.3 %, less than 1.5 % expected.
Moreover, the S & P Global Australia Composite Managers’ Index (PMI) decreased to 50.5 in May from 51.0 in April, and expanded for the eighth month in a row. However, the pace indicates marginal growth in commercial activity, albeit slower so far in 2025.
The S & P Global Australia Service Directors Index came at 50.6 in May, representing the sixteenth expansion month in a row, but at the slowest pace in six months. The AI AI -23.5 Manufacturing Group has published a slightly improved from the previous -26.5. Manufacturers are subjected to delay in major projects and high market frequency due to global and local uncertainty.
Sarah Hunter, the Australian Reserve Bank (RBA), expressed on Tuesday that “the higher customs tariff in the United States will wound the global economy.” Hunter indicated that the high uncertainty can inhibit investment, production and employment in Australia. However, it also added that the Australian exporters are in a relatively good position to overcome the storm and assumes that the Chinese authorities will support its economy through financial stimulation.
The Australian dollar is advancing with the emergence of the US dollar, amid the increasing definition of certainty
- The US dollar index (DXY), which measures the value of the US dollar for six major currencies, is trading around 99.10 at the time of writing this report. Greenback is fighting as merchants adopt cautiously amid the increasing definition and its ability to harm growth in the American economy.
- Jolts and employment switching shows showed the number of job opportunities on April of April, amounting to 7.39 million, as it increased from 7.2 million openings. This number was amazing above the market expectation of 7.1 million.
- The ISM Institute for the Manufacture of Procurement Managers decreased to 48.5 in May from 48.7 in April. This number came in a weaker than 49.5 expectation.
- US President Donald Trump said at a mass rally in Pennsylvania on Friday that he intends to double the tariff for steel and aluminum to build pressure on global steel producers and intensify trade war. “We will impose a 25 % increase,” he said in Reuters.
- On Thursday, the US Court of Appeal of the Federal Department in Washington set a temporary arrest of the Federal Court’s decision and allowed President Trump’s fees to arrive. On Wednesday, a committee of three judges in the International Trade Court in Manhattan Trump arrested the “Tahrir Day” tariff. The Federal Court found that Trump exceeded his authority to impose a wide widespread tariff and announced the executive orders issued on April 2 illegal.
- Republicans in the House of Representatives acknowledged a “big bill” for Trump, a package of tax and spending of millions of dollars, which can increase the American financial deficit, along with the risks of bond returns that remain higher for a longer period. This scenario raises concerns about the American economy and calls on merchants to sell American assets under the “sale of America”. Political experts expect changes in the Senate, as the Republican Party lawmakers aim to finalize the “major bill” by July 4.
- On Friday, Trump accused China of violating a truce on the definitions it reached earlier this month. Washington and Beijing agreed to temporarily decrease mutual definitions at a meeting in Geneva. Trump said China “has fully violated its agreement with us.” The American commercial actor, Jameson Jarir, said that China had failed to remove unchecled barriers as agreed.
- In response, a spokesman for the Chinese Ministry of Commerce said on Monday that China has extended to the agreement by canceling or suspending the and non -carrier -related measures targeting us “mutual tariffs.”
- The manufactured purchasing managers index (PMI) independently decreased to 48.3 in May from 50.4 in April, where market expectations fell to 50.6. However, the weekend data showed that the National Statistical Office manufacturing office (NBS) rose to 49.5 in May, from reading 49.0 in April. Meanwhile, the non -manufactured purchasing directors index decreased to 50.3 from the previous 50.4, as the expected reading of 50.6 decreased. The Australian dollar can be affected by Chinese economic data, as both countries are close commercial partners.
- The RBA report from the Monetary Policy meeting in May indicates that the Board of Directors had seen the case to reduce 25 stronger basis points, preferring that the policy be careful and predictable. Politics makers highlighted that American trade policy had a major and negative impact on global expectations, but they have not yet influenced the Australian economy, however, they were not convinced that 50 basis points were needed.
- The Australian Reserve Bank (RBA) is expected to provide more price cuts in the upcoming policy meetings. The central bank acknowledged the progress in reducing inflation and warning that the American and China trade barriers are negative risks to economic growth. Governor Michel Bullock stated that RBA is ready to take additional measures if the economic view deteriorates sharply, raising the possibility of price discounts in the future.
The Australian dollar finds immediate support in EMA for nine days near 0.6450
AUD/USD is trading about 0.6470 on Wednesday, indicating a prevailing bias. Technology in The Daily Chart analysis It indicates that the husband remains inside the emerging canal style. The short -term price momentum remains stronger as the pair remains higher than the Si -moving average for nine days (EMA). In addition, the relative strength index is placed for 14 days (RSI) over the score 50, indicating a fixed rise Expectations.
On the upper side, the AUD/USD pair can approach 0.6537, which is a seven -month height recorded on May 26. A break above this initial barrier can support the area to explore the area around the upper boundaries of the emerging canal about 0.6670.
The immediate support in EMA appears for nine days from 0.6456, aligned with the lower boundaries of the emerging canal about 0.6450. A successful breach below to this decisive support area can reduce bullish bias and lead the AUD/USD pair to test EMA for 50 days at 0.6395.
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 strongest against the Japanese yen.
| US dollar | euro | GBP | JPY | CAD | Aud | Nzd | Chf | |
|---|---|---|---|---|---|---|---|---|
| US dollar | -08 % | -06 % | 0.03 % | -01 % | -02 % | -11 % | -08 % | |
| euro | 0.08 % | -01 % | 0.07 % | 0.06 % | 0.06 % | -04 % | -01 % | |
| GBP | 0.06 % | 0.00 % | 0.04 % | 0.05 % | 0.06 % | -04 % | -01 % | |
| JPY | -0.03 % | -07 % | -04 % | 0.00 % | -08 % | -06 % | -06 % | |
| CAD | 0.00 % | -06 % | -05 % | -0.00 % | -01 % | -0.10 % | -07 % | |
| Aud | 0.02 % | -06 % | -06 % | 0.08 % | 0.01 % | -0.10 % | -07 % | |
| Nzd | 0.11 % | 0.04 % | 0.04 % | 0.06 % | 0.10 % | 0.10 % | 0.03 % | |
| Chf | 0.08 % | 0.01 % | 0.00 % | 0.06 % | 0.07 % | 0.07 % | -0.03 % |
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 gains from its exports in exchange for what it pays to 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 to buy imports. Therefore, the positive net trade balance enhances AUD, with the opposite effect if the trade balance is negative.
