FX.co ★ Australian Dollar Holds Firm

The Australian dollar maintained its position above $0.63 on Wednesday, marking its sixth straight session of gains. This boost was primarily fueled by positive economic data from China, which bolstered risk sentiment. Given that China is Australia's leading trade partner and a major consumer of its commodities, encouraging Chinese economic indicators contributed to the currency's rise, even amidst geopolitical uncertainties. However, the upward momentum faced challenges with the reemergence of trade tensions as U.S. President Donald Trump initiated an investigation into potential new tariffs on all critical mineral imports, many of which come from China. This development stoked concerns over an intensifying U.S.-China trade dispute. Meanwhile, within Australia, market participants looked forward to Thursday’s employment data, which is expected to provide further insights into the labor market's robustness and guide the Reserve Bank of Australia's future policy decisions.