- The Australian dollar loss after the People’s Bank of China decreases a one -year loan Prime rate from 3.00% to 3.10%.
- The Reserve Bank of Australia is expected to cut interest rates 25 basis points on Tuesday.
- The US dollar weakened after Moody’s downgrade of US credit ratings from AAA to AA1.
After a gain of over 0.50% in the previous season, the Australian dollar (AUD) took a dip against the US Dollar (USD) on Tuesday. The AUD/USD pair remains under pressure after People’s Bank of China (PBOC) announced their interest rate decision. PBOC on Tuesday announced a decrease in its loan prime rates (LPRS). One year LPR declined from 3.10% to 3.00%, while the five -year LPR declined from 3.60% to 3.50%. Given the close trade relations between Australia and China, any change in Chinese markets can greatly affect Australian dollar,
The Australian dollar is weak due to political upheaval growing in Australia. The opposition coalition fractured after the National Party’s withdrawal from the alliance with the Liberal Party. Meanwhile, the ruling Labor Party returned to power with a strong and broad mandate, capitalizing on chaos within the opposition.
The focus of the market is now set during the day for the upcoming rate decision of the Reserve Bank of Australia (RBA). The Central Bank is expected to cut interest rates 25 basis points in interest rates after the last week’s strong-to-afflicted employment data.
AUD/USD pair strengthened on Monday US dollar In view of Moody’s rating, weakened the US credit rating from AAA to AA1. This step aligns with fitch ratings in 2023 and with the same downgrade in 2011 with standard and poor. Moody’s is now expected to climb the US Federal loan to about 134% of GDP by 2035, above 98% in 2023, GDP widening up to 9% with budget deficit. This decline is attributed to rising debt-service costs, eligibility programs expanding and falling tax revenue.
In addition, risk-sensitive Australian dollars received renewed support from the 90-day US-China trade Trus and expected further trade deals with other countries. Meanwhile, US Treasury Secretary Scott Besant told CNN on Sunday that President Donald Trump intended to implement tariffs on business partners already threatened levels that are not engaged in “conversation” conversations.
Australian dollar depreciation between a fed fed despite a weak US dollar
- The US Dollar Index (DXY), which tracks the US dollar (USD) against a basket of six major currencies, is decreasing at around 100.40 at the time of writing and the trading is low.
- Economic data released last week pointed to make inflation easier, as both the Consumer Price Index (CPI) and the manufacturer price index (PPI) indicated a slowdown under price pressures. This has increased expectations that the Federal Reserve can apply additional rate cuts in 2025, which can contribute to US dollars and weakness. Additionally, American retail sale figures deepened concerns in the extended period of disappointing economic development.
- US President Donald Trump told Fox News that he was working to gain more access to China, describing the relationship as excellent and expresses his desire to interact directly with President Xi on a possible deal.
- The Trump administration plans to add several Chinese chipmakers to its export blacklist, known as the “unit list”. According to the Financial Times, the Trump administration officials expressed concern late on Thursday that the implementation of export control over major Chinese firms at this level can weaken the recently reached between China and the US during negotiations in Geneva.
- The National Bureau of Statistics (NBS) said on Monday that China’s retail sales increased by 5.1% year-on-year (YOY), which decreased by 5.5% forecast and below 5.9% in March. During the same period, industrial production increased by 6.1%, defeating the expected 5.5% to slow down by the last 7.7% increase.
- According to the Australian Bureau of Statistics (ABS), an increase of 89,000 in April, an increase of 36,400 and forecast in March is significantly higher than 20,000. Meanwhile, the unemployment rate remained unchanged at 4.1%.
- Australia’s seasonally adjusted wage price index Q1 2025 increased by 3.4% year-to-year, Q1 2024 crossed the 3.2% increase and 3.2% profit market forecasts. This marks a recovery from the pre -quarter, which recorded the fastest wage hike since Q3 2022. On a quarterly basis, the index Q1 climbed 0.9%, which exceeded an estimated 0.8% increase.
Australian dollar gets around 0.6450, support appears in the nine-day EMA
AUD/USD is trading near 0.6450 on Tuesday, in which technical indicators on the daily chart point to a rapid bias. The pair remains above the nine-day exponential moving average (EMA), while the 14-day relative power index (RSI) is above 50 points, which suggests a constant speed upwards.
Inverted, immediate resistance is located at six months high of 0.6515, posted on December 2, 2024. A continuous break above this level can open a seven -month high -level door from November 2024 to 0.6687.
The support is initially seen in the nine-day EMA of 0.6429, followed by the 50-day EMA around 0.6363. A clear drop under these levels will possibly weaken the small to medium-term approach, possibly triggering a deep decline of 0.5914 at the bottom of March 2020.
AUD/USD: Daily Chart
Australian dollar price today
The table below shows a percentage change of Australian Dollar (AUD) against major currencies listed today. The Australian dollar was the weakest against Swiss Frank.
| USD | EUR | Gbp | JPY | Paaji | Worship | Aristocratic federal | Chef | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.05% | 0.02% | 0.03% | 0.10% | 0.24% | 0.18% | -0.03% | |
| EUR | -0.05% | -0.02% | -0.02% | 0.06% | 0.20% | 0.14% | -0.08% | |
| Gbp | -0.02% | 0.02% | 0.02% | 0.08% | 0.19% | 0.18% | -0.02% | |
| JPY | -0.03% | 0.02% | -0.02% | 0.06% | 0.19% | 0.13% | -0.02% | |
| Paaji | -0.10% | -0.06% | -0.08% | -0.06% | 0.13% | 0.07% | -0.10% | |
| Worship | -0.24% | -0.20% | -0.19% | -0.19% | -0.13% | -0.06% | -0.24% | |
| Aristocratic federal | -0.18% | -0.14% | -0.18% | -0.13% | -0.07% | 0.06% | -0.18% | |
| Chef | 0.03% | 0.08% | 0.02% | 0.02% | 0.10% | 0.24% | 0.18% |
The heat map shows a percentage change of major currencies against each other. The base posture is picked up from the left column, while the quotation posture is raised from the top line. For example, if you choose Australian dollars from the left column and go to the US dollar along the horizontal line, the percentage change in the box will represent AUD (Aadhaar)/USD (quotes).
Australian Dollar Faqs
One of the most important factors for Australian Dollar (AUD) is the level of interest rates set by the Reserve Bank of Australia (RBA). Because Australia is a resource-rich country, another major driver is the price of its largest export, iron ore. The health of the Chinese economy, its largest business partner, is a factor, as well as inflation in Australia, its growth rate and business balance. Market spirit-Investors are taking more risky assets (risk-changes) or demanding safe-description (risk-closer)-this is also a factor, with the risk-on risk for Aud.
The Reserve Bank of Australia (RBA) affects the Australian Dollar (AUD) by determining the level of interest rates that Australian banks can lend to each other. This overall affects the level of interest rates in the economy. The main goal of RBA is to maintain a stable inflation rate of 2-3% by adjusting the interest rates up or down. Other major major central banks support relatively high interest rates AUD, and are contrast to relatively low. The RBA can also use quantitative spontaneity and tightening to affect the position of credit with pre-aud-negative and subsequent Aud-positive.
China is the largest trading 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 is doing well, it raises the demand for more raw materials, goods and services, AUD, and further its value than Australia. Conversely, the case is when the Chinese economy is not growing rapidly as expected. Positive or negative surprise in Chinese development data, therefore, often has a direct impact on the Australian dollars and its pairs.
Iron ore is Australia’s largest exports, according to 2021 data, accounting for $ 118 billion per year, with China as its primary destination. Therefore, the price of iron ore can be the driver of the Australian dollar. Generally, if the price of iron ore increases, theres also increase, as the total demand for currency increases. If the price of iron ore falls, then the opposite is the case. High iron ore prices are also as a result of a more probability of a positive business balance for Australia, which is also positive for AUD.
The difference between the business balance, which earns from the export of a country, is the difference between what he pays for his import, another factor that can affect the value of the Australian dollar. If Australia makes excessive demand after export, its currency will receive purely value from surplus demand made from foreign buyers, which spends to buy vs. imports to buy its exports. Therefore, a positive net trade balance strengthens the AUD, if the business balance is negative, then with the opposite effect.
