• The Australian dollar is absorbed when Trump puts a 25% tariff on the import of steel and aluminum.
• Consumer trust in Australia increased in February by 0.1%, reaching 92.2 in January from 92.1 earlier.
• The American dollar appreciates among the growing cautious mood related to the perspective of Fed policy.

The Australian dollar (AUD) weakened on Tuesday to the US dollar (USD), when the pressure fell on Aud/USD couples. The decrease occurred after the decision of the US President Donald Trump about the extension of steel and aluminum tariffs by 25% to include all imports, annulment of trade agreements with key US allies, including Australia. The White House confirmed that all exclusions of import taxes have been removed and indicated that in the coming weeks further activities regarding microchists and vehicles.

In February, consumer trust in Australia increased by 0.1%, reaching 92.2 of 92.1 in January. Despite the slight enhance in consumers, the trust of consumers remained mastered because of constant fears of household finances and growing maintenance costs.

Market pogroms suggests the growing expectations that the Australian Bank (RBA) will reduce 4.35% of the cash rate at the next meeting in February. Traders now see 95% likely to cut up to 4.10%, because the latest data indicate that the inflation underlying the base has decreased faster than the RBA expected. This prompted several main Australian banks to change the forecast of the first rate reduction from May to February.

The Australian dollar decreases in connection with the growing cautious tone of forecasts related to FED policy

• The American dollar index (DXY), which measures the value of the American dollar compared to the six main currencies, increases above 108.00 at the time of writing. Greenback is expected to receive support because the American federal reserve (FED) will maintain interest rates this year, after a January work report published on Friday, which indicated a slowdown in employment growth, but a lower unemployment rate.
• In January, American non -Farmy wages (NFP) increased in January by 143,000, well below the changed December number of 307,000 and market expectations of 170,000. However, the unemployment rate dropped slightly to 4% in January from 4.1% in December.
• Initial unemployed claims in the US increased to 219 thousand. In the week ending on January 31, as reported by the US Department of Work (Dol) on Thursday. This printout exceeds the initial estimates of 213 thousand. And he was higher than changed in the previous week 208 thousand. (From 207 thousand).
• President Bank of Chicago (FED), Austan Goologee, mentioned on Friday that the US government’s inconsistent political approaches cause a high level of economic uncertainty, which hinders the Fed to draw a bead about where the economy and inflation are probably probably directing.
• Meanwhile, a member of the Fed Governors, Adrian Kugler, noticed that the US growth and economic activity remained generally vigorous, but noticed that the progress towards Fed’s inflation was a bit skewed, to Reuters.
• In an interview with CNBC, President Minneapolis Fed, Neel Kaszkari, said that he would undertake to support further rates of rates if they see good inflationary data and the labor market remains sturdy
• The Chinese consumer price rate (CPI) increased in January in January by 0.5%in January, compared to 0.1%and by exceeding the market forecast of 0.4%. Every month, CPI inflation increased in January by 0.7%, compared to the December reading of 0%, although there was no 0.8%enhance from the expected growth.

Technical analysis: Australian Dollar tests nine EMA days, and then 0.6250

The Aud/USD pair floats on Tuesday near 0.6270, testing nine- and 14-day interpretation medium movable (EMA) on the daily chart. The break below these levels can weaken the miniature -term price rush. The 14-day relative strength (RSI) indicator maintains its position above 50, which suggests that the stubborn prejudice is lively.

On the other hand, the Aud/USD pair may examine the region of about eight -weekly top 0.6330, recently achieved on January 24.

The Aud/USD pair is testing immediate support on a nine-day EMA level 0.6264, and then an EMA 14-day 0.6258. The decisive break below these levels can weaken the short-term price rush, potentially pushing the pair in the direction of 0.6087-the other level from April 2020, registered on February 3.

Aud/USD: Daily Chart