- AUD/USD trades in a strict range of about 0.6300, because side investors for fear of mutual tariffs by US President Trump on April 2.
- Trump puts 25% tariffs on imported cars that will be effective from April 2.
- The Chinese government swore more fiscal support to stimulate the domestic economy.
The Aud/USD pair trads around 0.6300 in the Thursday session in North America. The Australian couple consolidates, despite the fact that the US dollar (USD) is corrected after the President of the United States (USA) Donald Trump puts 25% tariffs on car imports, which will enter into force on April 2.
The American dollar index (DXY), which follows the Greenback value compared to the six main currencies, a decrease to almost 104.30.
Theoretically, Donald Trump’s tariffs should boost the protected dismissal of the American dollar, because they are expected to charge global economic growth, investors expect that these import obligations are also unfavorable for US growth prospects.
Investors are preparing for greater volatility for the American dollar, because Trump is prepared to introduce mutual tariffs on April 2, which is expected to boost inflationary pressure in the USA and its commercial allies.
On the monetary policy front, the Federal Reserve Officials (FED) conduct the approach “Wait and see” among the uncertainty about Trump’s economic policy. Neel Kashkari, president of the Fed Minneapolis bank, said on Wednesday at the economic summit in Detroit Lakes Chamber Summit that the Fed should “just sit where we are for a long time until we gain clarity.”
Meanwhile, the Australian dollar (AUD) is struggling with Greenback, despite the fact that Beijing promised mighty financial support to stimulate economic growth. “More proactive and effective macroeconomic policies will be implemented to comprehensively expand domestic demand and stabilize foreign trade and investment,” said Chinese Deputy Prime Minister Ding Xuexiang on Thursday. The appeal increases Aud, taking into account the higher dependence of Australia on exports to China.
Aud/USD trades in creating a triangle triangle patterns in the daily time frame, which indicates the indecision of market participants. The horizontal resistance of the above -mentioned chart pattern is placed from the highest level on February 21 0.6408, while the upper limit of rest up is deleted from the February lowest level 0.6087.
The 20-day interpretation average (EMA) seems to be sticky for a pair of about 0.6300, which suggests a side trend.
The 14-day relative strength (RSI) indicator oscillates in the range of 40.00-60.00, which indicates contraction of variability.
A fresh disadvantage would appear if the pair bursts below the lowest level on March 4 0.6187 towards the lowest level of February 0.6087, followed by psychological support of 0.6000.
On the other hand, the movement of food above March 18, which is 0.6390, will open the door to the highest level of December 5 0.6456 and a round level of 0.6500.
