• Australian Dollar strengthens the Australian reserve bank in connection with the growing expectations of the Bank of Reserve Bank, keeping interest rates unchanged in April.
• Aud may face winds because traders take a cautious position before the expected Trump tariff on April 2.
• The American dollar gained because S&P Global Us Services PMI increased to 54.3 in March, which is a three -month level.

The Australian dollar (Aud) extends its profits to the second subsequent session on Tuesday. However, the Aud/USD pair was pressure down in connection with the USD strengthening dollar (USD). Solid S&P Services PMI and Careful FedSpeak probably fueled Greenback profits.

Audi says that investors predict that the Australian reserve bank (RBA) maintains interest rates unchanged in April, after the first reduction in the rate within four years in February. In addition, the expectations of the Chinese stimulus still strengthen the Australian economy, taking into account sturdy trade connections between the two nations.

Despite this, the risk sensitive to the risk of Aud/USD can face a potential wind, because traders remain cautious among the uncertainty about the tariff announcement of US President Donald Trump planned for April 2. While Trump suggested that “many” countries can receive dismissals, the details of his administration’s tariff plans remain unclear.

The Australian dollar appreciates despite the stable American dollar

• The American dollar index (DXY), which follows USD in relation to the six main currencies, remains stable and trads around 104.30. Greenback received support after the issue of mixed S&P Global US PMI data on Monday.
• The Global PMI with the American composite increased to 53.5 in March, compared to the 10-month lowest level 51.6, signaling the strongest enhance since December 2024. The extension was caused by the service sector, which noted the reflection of economic activity.
• S&P Global US Services PMI increased to 54.3 in March, which is the highest three -month, from 51.0 in February, exceeding market expectations 50.8. The service sector exit increased rapidly after reaching a 15-month minimum in February. Meanwhile, production PMI fell to 49.8 out of 52.7, without meeting market expectations of 51.8. This decrease occurred after the strongest enhance in production in February for almost three years.
• President Atlanta Fed, Raphael Bostic, emphasized constant uncertainty, stating that inflation progress may be slower than previously anticipated. Bostic cut his expectations regarding the reduction of the rate in 2025, citing lasting price pressure and trade risk.
• The American dollar was under pressure when fears are growing in connection with the potential economic slowdown in the USA, powered by commercial policy under the rule of President Trump. However, this inheritance trend was compensated by hawk remarks from the Fed Chairman Jerome Powell last week. He stated: “The working market conditions are solid and inflation has approached our 2% longer goal, although it remains a bit increased.”
• President Trump suggested that there could be a place for a “conversation” about commercial problems with China and expressed hope for a meeting with the Chinese president XI Jinping in the near future. At the beginning of this month, his proposal to strengthen American ship construction by imposing steep fees to ships related to China entering American ports led to the construction of coal stocks in the US and increased uncertainty in the already fighting sector of agriculture.
• Judo Bank and S&P Global announced on Monday that in Australia PMI it increased to 52.6 in March from 50.4 in February, while PMI services increased to 51.2 of 50.8. The complicated PMI also increased, reaching 51.3 in March compared to 50.6 earlier.
• The Chinese ruling committee of the Communist Party (CCP) and the State Council suggested the ambitious plans of “vigorous increase in consumption” by increasing wages and soothing financial burden. This latest initiative aims to restore consumers trust and revive the fighting economy of the country.
• Reserve Bank of Australia (RBA) Governor’s assistant (economic) Sarah Hunter repeated a cautious position of the Central Bank regarding rate reductions last week. In the February statement, RBA signaled a more conservative approach than market expectations, with particular emphasis on monitoring US policy decisions and their potential impact on the perspectives of Australia inflation.

The Australian dollar remains below 0.6300 resistance near nine EMA days

Aud/USD is near 0.6290 on Tuesday, and the technical indicators signal bears, because the pair remains in a decreasing system. The 14-day relative strength indicator (RSI) is located slightly below 50, strengthening the persistent rush down.

The key support lies on the lower border of the decreasing channel about 0.6220. The break below this level may deepen the bear’s perspective, potentially leading the pair towards the seven -weekly lowest level of 0.6187, registered on March 5.

On the other hand, the initial immunity is a nine-day interpretation of the movable average (EMA) of 0.6308, followed by a 50-day EMA at 0.6310. Breaking above these levels can strengthen low -term and medium -term stubborn shoots, with the pair potentially testing the upper limit of the decreasing channel at 0.6320.

Aud/USD: Daily Chart