The post AUD/USD turns upside down to near 0.6400 after US-China trade truce appeared on BitcoinEthereumNews.com.

AUD/USD weakens as the US Dollar gains after the US and China agree to lower tariffs. The US and China reduced tariffs by 115% for a 90-day period. This week, investors will focus on the Aussie employment data for April. The AUD/USD pair gives back initial gains and turns negative during North American trading hours on Monday. The Aussie pair slides to near 0.6390 as the US Dollar (USD) surges after the United States (US) and China agree to roll back higher import duties imposed after the announcement of reciprocal tariffs by President Donald Trump on the so-called Liberation Day on April 2. The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, surrenders some of its initial gains after struggling to extend its upside above 101.95. Still, it is over 1% up from its Friday close around 101.50, at the time of writing. In a scheduled briefing, the US and China announced a 90-day pause in the ongoing tariff war. Both nations reduced tariffs by 115%. Still, the 20% fentanyl levy in import duty on China is intact. However, Washington signaled that constructive discussions are on to resolve the same. The temporary truce between the US and China is expected to force market experts to revise their global economic outlook. This has led to a sharp rally in equities across the globe. The S&P 500 has opened with robust gains of about 2.6%, indicating a significant increase in the risk appetite of investors. Considering the strength in the US Dollar, the downside in the Aussie pair is lower as the Australian Dollar (AUD) has also attracted bids on de-escalation in the trade war between the US and China. Given that the Australian economy relies heavily on its exports to China, the Aussie Dollar is outperforming…

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Filed under: News - @ May 12, 2025 3:29 pm