FX.co ★ Australian Dollar Holds Decline on Greenback Strength

On Thursday, the Australian dollar stabilized around $0.641, maintaining recent declines as the strengthening US dollar exerted pressure on it. The US dollar gained momentum following a US federal court decision stating that President Donald Trump had overstepped his authority by imposing reciprocal tariffs. The court ordered these measures to be annulled and permanently blocked. Although the Trump administration is likely to appeal, this ruling presents a notable challenge to the president's trade policies. Domestically, Australia's monthly CPI data for April surpassed expectations, prompting concerns about potential inflationary pressures. Despite this, it is widely anticipated that the Reserve Bank of Australia will continue to ease monetary policy, as evidenced by last week’s 25 basis point rate reduction. Additionally, the easing of global tariff threats may impact the central bank's perspective on future rate modifications.