Aussie dollar trades above US$0.63
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Daily Currency Update
The Australian dollar is slightly weaker this morning when valued against the Greenback, currently trading at 0.6302 at time of writing. The AUD/USD pair trades sideways on Thursday’s North American session. The Aussie pair consolidates even though the US dollar corrects after the United States President Donald Trump announced 25% tariffs on auto imports, which will come into effect on April 2. AUD/JPY holds its ground after registering gains in the previous session, trading around 94.90 during early European hours on Thursday. However, the currency pair faced resistance as the Australian dollar (AUD) weakened against its peers due to heightened risk aversion. Further support for the AUD could come from expectations that the Reserve Bank of Australia (RBA) will maintain steady interest rates next week. In February, the RBA implemented its first 25-basis-point rate cut in four years. RBA Assistant Governor (Economic) Sarah Hunter reiterated the central bank’s cautious stance on further rate cuts, signalling a more conservative approach in its latest policy statement.Key Movers
The US Dollar Index (DXY), which measures the value of the US dollar (USD) against a basket of currencies, trades marginally lower on Thursday near the 104.40 area after giving back early-session gains. On the data-front, yesterday US Bureau of Economic Analysis (BEA) reported on Thursday that the United States' Gross Domestic Product (GDP) expanded at an annual rate of 2.4% in the fourth quarter. This reading came in above the market expectation and the previous estimate of 2.3%. Some of the world’s biggest car makers are already copping a huge hit, after Donald Trump announced he would impose tariffs on cars imported into the United States. President Donald Trump says he is placing 25 per cent tariffs on all automotive imports to the United States. He said it would foster domestic manufacturing but could also put a financial squeeze on automakers that depend on global supply chains. The White House expects the tariffs, starting in April, will raise US$100 billion ($159 billion) in revenue annually. Gold price uptrend continued on Thursday with the yellow metal hitting a new record high of $3,059 amid uncertainty over trade policies enacted by US President Donald Trump, which escalated the trade war by imposing tariffs on automobiles. The XAU/USD trades at $3,051, up more than 1%.Expected Ranges
- AUD/USD: 0.6200 - 0.6400 ▲
- AUD/EUR: 0.5700 - 0.5900 ▼
- GBP/AUD: 2.0450 - 2.0650 ▼
- AUD/NZD: 1.0900 - 1.1100 ▲
- AUD/CAD: 0.8900 - 0.9100 ▲