FX.co ★ Australian Dollar Gains on Dollar Weakness

The Australian dollar climbed to approximately $0.651 on Tuesday, recovering from significant losses experienced in the previous session, as it benefited from a weakening US dollar. This shift occurred after President Donald Trump unveiled a new set of tariffs targeted at fourteen nations that have not yet formalized trade agreements with the United States. These measures include a 25% tariff affecting major exporters like Japan and South Korea. Additionally, Trump issued an executive order to postpone the implementation of reciprocal tariffs from July 9 to August 1, adding further complexities to the global trade landscape. In Australia, the focus has now turned to the forthcoming monetary policy decision expected later today. The market largely predicts a 25 basis point reduction, lowering the cash rate to 3.60%, representing the Reserve Bank of Australia's third rate cut this year. Investors are also keenly awaiting the release of the National Australia Bank's June index on business confidence and conditions, which will be provided later today.