FX.co ★ Australian Dollar Falls Amid Global Recession Fears

The Australian dollar fell to approximately $0.63 on Friday, reversing gains from the previous day as financial markets grew increasingly risk-averse due to escalating concerns about a recession driven by global tariffs. Although US President Donald Trump implemented a 10% tariff on Australian imports, Prime Minister Anthony Albanese decided against countermeasures, highlighting that the US constitutes less than 5% of Australia's export market. Nevertheless, the rise in US tariffs aimed at Australia's major trading partners—such as China, Japan, and South Korea—casts a shadow over the global trade outlook and economic growth predictions. Consequently, expectations for interest rate cuts by the Reserve Bank of Australia have been adjusted, now anticipating a total of 100 basis points this year, an increase from the previous 75 basis points projected earlier in the week. The next interest rate reduction is anticipated in May, with subsequent cuts possible in July and August.