FX.co ★ Australian Dollar Rises Amid Greenback Weakness

The Australian dollar experienced an uptick, reaching approximately 0.646 on Monday. This rise was attributed to a weakening US dollar, which was affected by investor apprehensions regarding US President Donald Trump's tariff policies. On the preceding Friday, President Trump declared an intention to increase tariffs on steel and aluminum imports from 25% to 50%, effective June 4. This announcement, coupled with escalating trade tensions between the US and China, intensified investor worries about decelerating economic growth and increasing inflationary pressures. In Australia, recent data indicated a downturn in the manufacturing sector for the second month in succession, hitting its lowest point since February—a clear indicator of declining industrial activity. Furthermore, retail sales saw an unexpected drop in April, underscoring rising consumer caution. These developments have reinforced the anticipation that the Reserve Bank of Australia will continue with its monetary policy easing measures.