FX.co ★ Australian Dollar Gains on Greenback Weakness

On Friday, the Australian dollar appreciated to approximately $0.625, marking its third successive gain, as the U.S. dollar experienced broad weakening caused by rising concerns over the U.S. economic outlook and diminishing investor confidence in American assets. Despite a 90-day respite from tariffs, caution persists in the market over President Trump's trade policies potentially pushing the U.S. economy towards a recession. The Trump administration confirmed that the cumulative tariffs on Chinese goods have surged to 145%, raising fears of possible further retaliation from Beijing, which has already imposed an 84% levy on U.S. imports. Significantly, China remains Australia's largest export destination, serving as a vital consumer of Australian commodities. Domestically, there is uncertainty regarding the timing of the Reserve Bank of Australia's forthcoming rate cut, as trade-related uncertainties cloud the economic forecast. Currently, the markets are anticipating a 25-basis point rate cut in May, with an overall easing of approximately 120 basis points expected throughout the year.