The post AUD/USD bounces back to near 0.6400 as US Dollar’s recovery fizzle out appeared on BitcoinEthereumNews.com.

AUD/USD recovers sharply to near 0.6400 at the expense of the US Dollar. Washington has signaled its willingness to negotiate a trade deal with China. The RBA is expected to cut interest rates next month. The AUD/USD pair rebounds to near 0.6390 during European trading hours on Thursday. The Aussie pair recovers as the two-day recovery in the US Dollar (USD) has fizzled out despite ebbing fears of an intense trade war between the United States (US) and China. The US Dollar Index (DXY), which gauges the Greenback’s value against six major currencies, retreats to near 99.20 from Wednesday’s high around 100.00. US President Donald Trump has expressed a willingness to make a trade deal with China. “Discussions with Beijing are going well, and I think that we will reach a deal,” Trump said on Tuesday. Hopes of a de-escalation in the tariff war between the world’s two largest powerhouses have improved further as US Treasury Secretary Scott Bessent has shown openness to lower tariffs. “I don’t think either side believes that the current tariff levels are sustainable, so I would not be surprised if they went down in a mutual way,” Bessent said. Meanwhile, fears of a resurgence in US inflation have escalated as the flash S&P Global Purchasing Managers’ Index (PMI) report showed that respondents have signaled passing the impact of tariffs on consumers. Such an event will limit the Federal Reserve’s (Fed) capability of reducing interest rates. Easing tensions between Washington and China is also a favorable scenario for the Australian Dollar (AUD), given the significant dependence of the Australian economy on its exports to China. Domestically, increasing odds of an interest rate cut by the Reserve Bank of Australia (RBA) in the May policy meeting could weigh on the Aussie Dollar. According to analysts at Westpac,…

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Filed under: News - @ April 24, 2025 11:28 am