FX.co ★ Australian Dollar Edges Higher

On Tuesday, the Australian dollar experienced a slight uptick, climbing to approximately $0.654, after a significant drop in the previous session. This movement was primarily due to renewed optimism regarding US President Donald Trump's openness to continue trade negotiations. Although Trump continues to uphold the plan for a 30% tariffs increase set for August 1, he has expressed willingness to re-engage with the European Union and other key trading partners. This development suggests a possible diplomatic breakthrough, alleviating investor concerns about an escalating trade war. On the domestic front, market sentiment was boosted by favorable economic indicators: the Westpac-Melbourne Institute Consumer Sentiment Index increased by 0.6% compared to the previous month, reaching 93.1 in July 2025. This represents the third consecutive month of growth, indicating a gradual improvement in consumer confidence. Investors are now focusing on significant domestic data releases scheduled for later this week, including predictions for consumer inflation and the latest employment statistics.