The post Australian Dollar depreciates following employment data, China’s policy decision appeared on BitcoinEthereumNews.com.

The Australian Dollar depreciates due to the latest Trump tariffs and cautious FOMC Minutes. Australia’s Unemployment Rate increased to 4.1% in January from 4.0% in December, as expected. President Trump has confirmed plans to impose a 25% tariff on imports of automobiles, semiconductors, and pharmaceutical products. The Australian Dollar (AUD) extends its losses against the US Dollar (USD) following the release of domestic employment data and China’s interest rate decision on Thursday. However, the AUD/USD pair faced headwinds as risk aversion increased due to concerns over the latest tariffs from US President Donald Trump and a cautious tone in the Federal Open Market Committee (FOMC) Minutes from January’s policy meeting. On Thursday, the Australian Bureau of Statistics (ABS) reported that Australia’s seasonally adjusted Unemployment Rate rose to 4.1% in January from 4.0% in December, aligning with market expectations. Additionally, Employment Change came in at 44K for January, down from a revised 60K in December (previously 56.3K), but still exceeding the consensus forecast of 20K. The People’s Bank of China (PBOC) opted to keep its Loan Prime Rates (LPRs) unchanged, with the one-year and five-year rates remaining at 3.10% and 3.60%, respectively. The AUD faced downward pressure after the Reserve Bank of Australia (RBA) lowered its Official Cash Rate (OCR) by 25 basis points to 4.10% on Tuesday—the first rate cut in four years. RBA Governor Michele Bullock acknowledged the impact of high interest rates but cautioned that it was too soon to declare victory over inflation. She also emphasized the strength of the labor market and clarified that future rate cuts are not guaranteed, despite market expectations. Australian Dollar declines due to Trump tariffs, FOMC Minutes The US Dollar Index (DXY), which measures the USD against six major currencies, hovers around 107.00. Meanwhile, US Treasury yields stand at 4.26% for…

---

Filed under: News - @ February 20, 2025 2:25 am