FX.co ★ Australian Dollar Slips Amid Global Trade Jitters

The Australian dollar edged down towards $0.64 on Tuesday, retreating from recent multi-month peaks amid increased global trade uncertainties which have weighed on investor confidence. The situation was exacerbated when China dismissed assertions by President Donald Trump that he had engaged in discussions with President Xi Jinping, emphasizing that they are not currently involved in trade negotiations with the United States. Additionally, US Treasury Secretary Scott Bessent highlighted that resolving the tensions remains "up to China," while pointing out China's significant trade surplus with the US. On the domestic front, the focus is now on Australia's inflation figures, set to be released on Wednesday, which are likely to play a crucial role in shaping the Reserve Bank of Australia's future policy direction. The RBA is broadly anticipated to proceed with another 25-basis-point interest rate cut in May, as it contends with escalating global economic challenges, including potential repercussions from newly imposed US tariffs.