Australian Dollar loses ground due to rising expectations of RBA’s rate cut in May
The post Australian Dollar loses ground due to rising expectations of RBA’s rate cut in May appeared on BitcoinEthereumNews.com.
The Australian Dollar remains under pressure as the US Dollar strengthens, supported by signs of easing US-China tensions. China’s move to exempt certain US imports from its 125% tariffs has sparked some optimism for better trade relations. The Federal Reserve is in its blackout period ahead of the May 7 Federal Open Market Committee meeting. The Australian Dollar (AUD) extends loses for the second successive session on Monday. The AUD/USD pair is under pressure as the US Dollar (USD) strengthens amid signs of easing tensions between the US and China. China exempted certain US imports from its 125% tariffs on Friday, according to business sources. The move has fueled hopes that the prolonged trade war between the world’s two largest economies might be drawing to a close. However, Reuters cited a Chinese embassy spokesperson on Friday, who firmly denied any current negotiations with the US, stating, “China and the US are not having any consultation or negotiation on tariffs.” The spokesperson urged Washington to “stop creating confusion.” The AUD also faces headwinds as expectations are mounting that the Reserve Bank of Australia (RBA) will deliver another 25-basis-point rate cut in May, as economic uncertainties deepen and concerns over the global trade environment intensify. Australian Dollar falls as US Dollar gains ground amid easing US-China concerns The US Dollar Index (DXY), which measures the USD against six major currencies, gains ground for the second successive day, trading near 99.60 at the time of writing. The Federal Reserve (Fed) is in blackout mode ahead of its May 7 Federal Open Market Committee (FOMC) meeting. US Agriculture Secretary Brooke Rollins said on Sunday, as reported by Reuters, that the Trump administration is holding daily discussions with China regarding tariffs. Rollins emphasized that talks were ongoing and that trade agreements with other countries were…
Filed under: News - @ April 28, 2025 2:07 am