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AUD/USD attracts some sellers to around 0.6510 in Monday’s early Asian session, down 0.21% on the day.  Trump tariff threats and the geopolitical risks weigh on the Aussie, but hawkish RBA bets might cap its downside. The Australian Retail Sales and the USI SM Manufacturing PMI will be the highlights on Monday.  The AUD/USD pair weakens to near 0.6510 despite the renewed US Dollar demand during the early Asian session on Monday. Investors will keep an eye on the Australian Retail Sales and the USISM Manufacturing Purchasing Managers’ Index (PMI), which is due later on Monday.  The US President-elect Donald Trump flagged his intention to impose a 25% tariff on all products from Mexico and Canada and an additional 10% on goods from China, exerting some selling pressure on the China-proxy Australian Dollar (AUD) as China is the largest trading partner to Australia. Furthermore, heightened geopolitical tension and economic uncertainty could benefit the US Dollar’s safe-haven status and act as a headwind for AUD/USD. On the other hand, the hawkish remarks from the Reserve Bank of Australia (RBA) might help limit the AUD’s losses. The RBA Governor Michele Bullock said last week that “underlying inflation is still too high to be considering lowering the cash rate target in the near term.”  On the USD’s front, the ISM PMI will take center stage later in the day. Manufacturing PMI is expected to improve to 47.5 in November from 46.5 in October. In case of the stronger-than-expected outcome, this could lift the Greenback against the Aussie.  Australian Dollar FAQs One of the most significant factors for the Australian Dollar (AUD) is the level of interest rates set by the Reserve Bank of Australia (RBA). Because Australia is a resource-rich country another key driver is the price of its biggest export, Iron Ore. The health of the…

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Filed under: News - @ December 1, 2024 11:09 pm