FX.co ★ Australian Dollar Falls on Risk Aversion

The Australian dollar dipped below $0.63 on Friday, marking its fourth consecutive session of decline amid escalating concerns over global economic conditions and trade tensions. Investors were on edge as the April 2 deadline loomed for U.S. President Donald Trump's reciprocal tariffs targeting nations that have levied duties on American goods, stoking fears of a trade war. Additionally, uncertainty surrounding the timing and scope of Beijing's new stimulus measures put further pressure on the Australian currency, often used as a liquid substitute for the Chinese yuan due to Australia's robust trade relationship with China. Domestically, Reserve Bank of Australia (RBA) Assistant Governor Sarah Hunter noted this week that February’s interest rate cut was aimed at easing restrictive monetary policy. However, she highlighted that the RBA remains more cautious than the market consensus on executing further rate cuts. Analysts remain split on when the RBA might next reduce rates, with some forecasting a move as early as May, while others project it for July or August.