FX.co ★ Australian Dollar Rises as US Dollar Retreats

The Australian dollar advanced beyond $0.63 on Thursday, recovering from the previous day's losses, as the US dollar experienced a decline. This shift came after President Donald Trump declared a 25% tariff on car imports. Trump further confirmed that the upcoming reciprocal tariffs would persist into his second term. This announcement intensified concerns over possible retaliations and broader economic disturbances, which resulted in heightened volatility within the currency markets. Meanwhile, recent data released on Wednesday indicated that Australia's monthly Consumer Price Index (CPI) slipped to a three-month low of 2.4% in February, contrary to expectations that predicted it would remain unchanged from January's 2.5%. Looking forward, the Reserve Bank of Australia is scheduled to convene next week, and the general market consensus anticipates maintaining steady interest rates. However, traders are currently factoring in a two-thirds probability of another rate cut in May, following the RBA's first rate reduction in over four years, implemented last month.