FX.co ★ Australian Dollar Rebounds on Global Trade Optimism

The Australian dollar surpassed $0.645 on Thursday, regaining approximately half of the losses experienced in the prior session, as positive sentiment around global trade developments bolstered the market. The Australian currency received a boost after President Donald Trump announced via Truth Social his intention to hold a press conference on Thursday, expected to reveal an agreement with a major country, reportedly the United Kingdom. In addition, senior U.S. officials are preparing to meet with their Chinese counterparts in Switzerland over the weekend in a renewed effort to mitigate trade tensions. Nevertheless, Trump emphasized that he would not relax tariffs on China as a prerequisite for starting formal negotiations. Meanwhile, the Federal Reserve left interest rates unchanged and adopted a cautious outlook, citing uncertainties related to tariffs. Domestically, the market is increasingly anticipating a 25 basis point rate cut by the Reserve Bank of Australia in its May meeting, as signs of an economic slowdown and mounting external challenges influence economic projections.