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AUD/USD ticks lower to near 0.6400 as the US Dollar aims for a cushion after a sharp decline in the last few weeks. US President Trump has assaulted the Fed’s independence for not lowering interest rates. The trade war between the US and China could impact the Australian Dollar. The AUD/USD pair corrects slightly to near 0.6400 during European trading hours on Tuesday after posting a fresh four-month high at 0.6440 earlier in the day. The Aussie pair retraces as the US Dollar (USD) strives to gain ground after remaining in the downside trajectory in the last few weeks. The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, looks for a cushion after posting a fresh three-year low near 98.00. However, the outlook of the US Dollar remains bearish as its safe-haven status has come under pressure due to the deepening tussle between United States (US) President Donald Trump and Federal Reserve (Fed) Chair Jerome Powell. Donald Trump has been criticizing Powell for not lowering interest rates and has blamed that his restrictive monetary policy stance could lead to an economic slowdown. “With these costs trending so nicely downward, just what I predicted they would do, there can almost be no inflation, but there can be a SLOWING of the economy unless Mr. Too Late, a major loser, lowers interest rates, NOW,” Trump wrote in a post on Truth.Social on Monday. Though investors have underpinned the Australian Dollar (AUD) against the US Dollar, it is underperforming against other peers on Tuesday as investors worry that the escalated trade war between the US and China will impact the Australian economy significantly. Given that the Australian economy relies heavily on its exports to China, fears of a potential slowdown in Beijing also weighed on the Aussie Dollar.…

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Filed under: News - @ April 22, 2025 12:27 pm