FX.co ★ Aussie Dollar Slips Despite Trade Deal Optimism

The Australian dollar experienced a decline to approximately $0.650 on Tuesday, halting a two-day period of gains despite positive sentiment surrounding progress in the US-Australia trade agreement. Recently, the two nations formalized a partnership focused on critical minerals, with US President Donald Trump and Australian Prime Minister Anthony Albanese highlighting the accord as a significant move towards lessening American reliance on China. This development comes in response to China's decision to impose tighter export restrictions on its critical mineral resources. Albanese emphasized that the agreement elevates the US-Australia alliance, acknowledging ongoing collaboration since Trump's initial term but noting this latest deal as a substantial advancement in fortifying ties. The initiative will fund a collection of "ready-to-go" projects, valued at $8.5 billion (A$13 billion), which aim to enhance Australia’s mining and processing capabilities. Meanwhile, on the domestic front, investors are now looking forward to flash PMI data and upcoming addresses from Reserve Bank of Australia (RBA) officials this week.