The Australian dollar defends its land despite the mood of the cautious market related to definitions
- AUD/USD is above 0.6200, defending light offers amid concerns related to vulnerable Chinese tariffs and data.
- American PCE data has shown any surprises, the Federal Reserve is still cautious.
- RBA Dovish Bets continues to press the husband.
The Australian dollar connects with moderate gains on Friday, trading about 0.6215 after touching it for a period of two weeks. The couple remains under pressure, as US President Donald Trump emphasized plans to impose a tariff on Chinese imports, which led to the relief of risk morale.
Meanwhile, speculation about a possible average by the Australian Reserve Bank (RBA) continues in February and continuous economic conflicts in China are still influencing the Australian.
Daily Digest Market Movers: Aussie Contrugges on Us Drifs Choics
- The United States confirms that 25 % tariffs for Canada and Mexico, 10 % on China, as of February 1.
- The US dollar is declining with wiping the weak economic data weekly, pushing the DXY to less than its peak near 108.00.
- PMI data in China disappoints with the contract and services hardly expand, which presses the Australian.
- Iron ore prices have reached the highest annual levels, providing light support for AUD despite concerns about the weak demand for China.
- Markets consider that RBA reduction rates in February are an expired deal, which also weakens Australian.
- On the American Data Front, the Personal Consumption Expenditure Index (PCE), which is the preferred inflation scale of the Federal Reserve, increased by 0.3 % MOM in December, after an increase of 0.1 % in November.
- On an annual basis, the PCE inflation rate increased to 2.6 % above 2.4 % the previous month. The main PCE, which excludes food and energy prices, remained fixed at 2.8 % on an annual basis for the third month in a row.
- Markets do not expect any price reduction by the Federal Reserve in March.
Technical expectations: AUD/USD for the direction
The AUD/USD is still limited to a narrow range, as it faces resistance near 0.6230 while obtaining support at 0.6200. The RSI (RSI) index stands at 42 in negative lands, reflecting the lack of a clear trend momentum. Meanwhile, the average medium rapprochement fee (MACD) is printed from reducing green tapes, indicating the fading of the upholstery.
Despite the recent recovery attempts, Aussie’s bullish capabilities seem limited. A break below 0.6200 can lead to more losses, while a step exceeding 0.6230 may provide short -term comfort.
Customs fees are common questions
Customs duties are useful customs duties on some imports of goods or a category of products. Customs duties are designed to help local producers and manufacturers to be more competitive in the market by providing the price feature on similar goods that can be imported. Definitions are widely used as fever tools, along with commercial barriers and import shares.
Although customs tariffs and taxes generate government revenues to finance public goods and services, they have many differences. Customs duties are pre -paid in the entry port, while taxes are paid at the time of purchase. Taxes are imposed on individual taxpayers and companies, while customs duties are paid by importers.
There is a school of thought between economists regarding the use of definitions. While some argue that definitions are necessary to protect local industries and address commercial imbalances, others see them as a harmful tool that can push prices up in the long term and lead to a harmful trade war by encouraging customs tariffs.
During the period before the presidential elections in November 2024, Donald Trump explained that he intends to use the customs tariff to support the American economy and American producers. In 2024, Mexico, China and Canada accounted for 42 % of the total imports of the United States. During this period, Mexico emerged as the best source with $ 466.6 billion, according to the American Statistical Office. Thus, Trump wants to focus on these three countries when imposing definitions. It is also planned to use the revenues created by definitions to reduce personal income taxes.
