The Australian dollar is hovering near the psychological level after retracting its highest levels in six months
- The Australian dollar carries its location near the level of 0.6500 psychologists after retreating from above six months at 0.6537.
- Aud faces some challenges due to feelings that surround the expectations of RBA policy.
- The US dollar is struggling due to the fears of the financial deficit, as the Trump Tax Bill in Trump is scheduled to vote in the Senate.
The Australian dollar (AUD) remains defeated against the US dollar (USD) for the second consecutive day on Tuesday. However, the AUD/USD pair maintains its site near the level of 0.6500 psychologists after retreating from the top of six months at 0.6537, which was reached on Monday. However, the continuous decline in the US dollar provides support for the husband, which can be attributed to the increasing concerns about the concerns of the US debt (United States).
The AUD/USD pair can regain his land where Greenback faces additional challenges amid improving feelings on risk, driven by diluted trade tension between the United States (the United States) and the European Union (European Union). US President Donald Trump extended the final date of the European Union (European Union) from June 1 to July 9 after a phone call to European Commission President Ursula von der Layen on Sunday. On Friday, Trump threatened to impose a 50 % tariff on imports from the European Union (European Union).
The Australian Reserve Bank (RBA) is expected to provide more cuts in interest rates in the upcoming policy meetings, which may put an end to the upscale trend of the Australian dollar. The Australian Central Bank delivered the interest rate of 25 basis points in the previous week. Moreover, Governor Michel Bullock stated that the central bank is ready to take additional measures if the economic view deteriorates sharply, raising the possibility of price discounts in the future.
AUD has received support from the 90 -day US -Chinese trade truce, along with the expectations of the additional American commercial deals with other countries. The markets will closely monitor more developments on US -Chinese trade negotiations, as China is a major commercial partner in Australia.
The Australian dollar is still defeated despite the weakness of the US dollar amid increasing debts
- The US dollar index (DXY), which measures the value of Greenback compared to six main currencies, continues to lose the Earth to the third session in a row on Tuesday. DXY is trading about 98.80 at the time of writing this report. Traders are likely to notice the orders of strong goods, the Dallas Industrialization Index, and the Consumer Confidence Report at the Conference Council later in the North American session.
- The American financial deficit may increase more when a “beautiful, beautiful bill” of Trump passes through the Senate Hall, which increases the risk of bond returns at a longer period. The highest bodies revenue can keep borrowing costs higher for consumers, companies and governments.
- The Trump bill is expected to increase the deficit by $ 3.8 billion, as it will provide tax exemptions on the income of the party and the car manufactured loans in the United States, according to the CBO budget office (CBO).
- “I think we have enough votes to stop this process so that the president becomes serious about spending the deficit limit,” said American Senator Ron Johnson CNN. Johnson added, “My main focus is now a spending. This is completely unacceptable. Current expectations are a deficit of $ 2.2 trillion annually,” Johnson added.
- During his speech in Japan on Monday, the head of the Minneapolis team, Neil Kacquary, indicated that “uncertainty is at the top of the mind for American companies,” indicated that “the uncertainty is at the top of the mind for American companies,” Kashkari said that the extended definitions increase the risk of stagnation, and wonder about the size of the recession. He expressed doubts that the image would be clear enough by September.
- On Friday, the Federal Reserve Chairman in Chicago, Austan, said on Friday that Trump’s identification threats are most likely to postpone changes on interest rates. Meanwhile, the head of the Kansas City City Jeffrey Schmid indicated that policy makers will establish solid data before formulating interest rate decisions, and the Federal Reserve should be careful of the focus on soft data.
- On Thursday, Federal Reserve Governor Christopher Walier indicated that markets are monitoring fiscal policy. Waller also stated that if the customs tariff is close to 10 %, the economy will be in good condition for H2, and the federal reserve may be in a position to reduce it later in the year.
- The US dollar continues in the conflict after MOODY classification to classify American credit from AAA to AA1, after a similar classification was reduced by Fitch classifications in 2023 and Standard & Poor in 2011. Moody’s now projects US Debt Federal Climb to about 134 % of GDP by 2035, an increase from 98 % in 2023 in 2023. This deterioration is due to the high costs of debt service, the expansion of entitlement programs, and a decrease in tax revenues.
- China’s Trade Ministry said last week that the United States’ measures on advanced chips in China are “typical for bullying and fever unilaterally” and hindering the stability of the global semiconductor industry chain and the supply chain. The Chinese authorities have asked the United States to correct their wrong practices quickly.
- Merchants will monitor Australian Australia’s relations, as Chinese Ambassador criticized Australia’s plan to re -rent Darwin Port. The port of the Chinese company Landbridge was rented in 2015 for 99 years. The Chinese embassy described this decision as an unfair and unethical step for every Reuters.
The Australian dollar remains less than 0.6500 after retracting its highest levels
AUD/USD pair is traded around 0.6490 on Tuesday, with daily technical indicators indicating a continuous upward bias as the pair remains higher than the SIA moving average for nine days (EMA). Moreover, the 14 -day relative indicator (RSI) maintains its location above 50 marks, which supports upward expectations.
Aud/USD pair can test a six -month height at 0.6537. A successful break above this level may enhance the bullish bias and lead the spouses to approach the highest level in seven months at 0.6687, registered in November 2024.
On the negative side, EMA for nine days of 0.6456 will work as immediate support, followed by EMA for 50 days near 0.6380. The decisive break that is less than these levels would weaken the short and medium -term price momentum and open the doors for the husband to move in the region about 0.5914, which is the lowest level since March 2020.
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 Japanese yen.
| US dollar | euro | GBP | JPY | CAD | Aud | Nzd | Chf | |
|---|---|---|---|---|---|---|---|---|
| US dollar | -0.14 % | -0.13 % | -0.44 % | -07 % | -01 % | 0.03 % | -18 % | |
| euro | 0.14 % | -01 % | -0.31 % | 0.08 % | 0.05 % | 0.08 % | -06 % | |
| GBP | 0.13 % | 0.00 % | -0.27 % | 0.08 % | 0.06 % | 0.08 % | -0.10 % | |
| JPY | 0.44 % | 0.31 % | 0.27 % | 0.40 % | 0.44 % | 0.40 % | 0.27 % | |
| CAD | 0.07 % | -08 % | -08 % | -0.40 % | 0.03 % | 0.00 % | -0.17 % | |
| Aud | 0.01 % | -05 % | -06 % | -0.44 % | -0.03 % | -06 % | -0.23 % | |
| Nzd | -0.03 % | -08 % | -08 % | -0.40 % | -01 % | 0.06 % | -0.21 % | |
| Chf | 0.18 % | 0.06 % | 0.10 % | -0.27 % | 0.17 % | 0.23 % | 0.21 % |
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.
