During Wednesday’s American session, the Australian Dollar saw a pullback after a brief rise, driven by US tariff announcements. Initially received positively, the complexity of the tariff plan later led to a cautious market sentiment.
RBA Holds Steady Amid Inflation Concerns
The Reserve Bank of Australia (RBA) kept its key rate at 4.10% this week, signalling no immediate rate cuts despite ongoing inflation and growth risks.
The technical indicators show conflicting signals, with the MACD indicating bearish momentum while the RSI suggests consolidation.
Resistance levels include 0.62978, 0.6304, and the psychological barrier of 0.6400. Current moving averages lean bearish, suggesting limited potential for upward movement without a strong catalyst.
Tariffs, designed to enhance local competitiveness, differ from taxes in their application, with varying opinions among economists regarding their long-term effects on trade and prices.
Tariffs And Their Global Market Impact
In the context of the upcoming presidential election, Donald Trump is expected to utilise tariffs as a strategy to bolster the US economy, particularly focusing on Mexico, China, and Canada, which made up 42% of US imports in 2024.
