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The Australian Dollar declines against the US Dollar (USD) after opening from a gap up on Monday. The AUD/USD pair depreciates as the Greenback gains on increased safe-haven demand, which could be attributed to the recent comments from US President Donald Trump over the weekend. However, the AUD/USD pair appreciated as the US Dollar came under pressure amid rumors of a possible intervention in FX markets to support the Japanese Yen (JPY). According to Bloomberg, traders said the Federal Reserve Bank of New York had carried out a so-called rate check with major banks, requesting indicative exchange rates, a step widely viewed as a signal that authorities may be preparing to facilitate another intervention. Australia’s strong PMI data reinforced the likelihood of a tighter monetary policy from the Reserve Bank of Australia (RBA), supported by employment data. RBA policymakers acknowledged that inflation has eased significantly from its 2022 peak, though recent data suggests renewed upward momentum. Headline CPI slowed to 3.4% YoY in November but remains above the RBA’s 2–3% target band. US Dollar edges higher on safe-haven demand The US Dollar Index (DXY), which measures the value of the US Dollar against six major currencies, is recovering ground and trading near 97.10 at the time of writing. Trump warned he would impose 100% tariffs on Canadian goods if Ottawa were to strike a trade deal with China, the BBC reported over the weekend. In response, Canada’s Prime Minister Mark Carney said on Sunday that Canada has no plans to pursue a free trade agreement with China, clarifying that his recent understanding with Beijing only reduced tariffs in a few sectors that had been hit recently. The US Gross Domestic Product grew at an annualized rate of 4.4% in the third quarter of 2025, slightly more than expected and the…

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Filed under: News - @ January 26, 2026 3:01 am