AUD price action muted in absence of new tariff news and major data
Written by
Daily Currency Update
There has been little net movement in the AUD through the last 24 hours as an absence of headline data sets and few new tariff announcements allow investors time to take stock and breathe. While another tranche of tariff letters was released they avoided major trading partners and offered little by way of deviation from the rates announced on Liberation Day in April. Markets have so far largely ignored this latest round of tariff announcements, anticipating the net tariff rate will land near the current levels. Of course sentiment may shift if the trade agreements with major trading partners like the EU and Taiwan deviate from the existing status quo. The AUD tracked sideways for much of the day bouncing between US$0.6515 and US$0.6545 and opens this morning at US$0.6537.Our attention today turns to US jobless claims and ongoing tariff headlines.
Key Movers
Price action among major currencies was muted Wednesday as markets sidelined major bets amid an absence of tier 1 macro data and headline news flow. While President Trump released another slew of letters informing trading partners of the tariff rates that will be applied on August 1st the list of recipients did not include significant trading partners and offered little deviation from the rates announced on Liberation Day. All in the market still expect the final US tariff rate will land near the current levels and are therefore largely unperturbed by this latest round of posturing. The USD DXY index is little changed while the CHF and JPY led gains as the euro and GBP edged marginally lower. The days biggest looser was the Brazilian Real as markets responded to reports a 50% tariff would be levied. Previously Brazil had been hit with just a 10% baseline tariff but Trump Grievances surrounding the treatment of former President Bolsonaro and the perceived ‘anti-American’ polices of the BRICS alliance have driven a more aggressive agenda. While the announcement doesn’t necessarily suggest a broader shift in the US tariff agenda it serves as a timely reminder of the Presidents penchant for settling all manner of perceived injustices regardless of their impact on perceived trade fairness.Our attention today turns to US jobless claims in an otherwise light macro ticket with tariff headlines again driving underlying sentiment.
Expected Ranges
- AUD/USD: 0.6480 - 0.6580 ▲
- AUD/EUR: 0.5520 - 0.5620 ▲
- GBP/AUD: 2.0700 - 2.1000 ▼
- AUD/NZD: 1.0850 - 1.0930 ▲
- AUD/CAD: 0.8900 - 0.9000 ▲