Australian Dollar depreciates as US Dollar gains ground amid market caution

• The Australian dollar is fighting amid widespread aversion to the ongoing economic risks and concerns in China.
• Last week, the strong economic data of Australia reduced price discounts by the Australian Reserve Bank.
• Traders adopt caution before issuing US consumer price index data on Wednesday.

The Australian dollar (AUD) is weakening against the US dollar (US dollar) on Wednesday, and weighs a widespread aversion to the risk. Fears were intensified due to the political transformations of US President Donald Trump, especially the definitions that have increased the possibility of a long trade war.

Australian Prime Minister Anthony Albaniz said on Wednesday that “Australia will not impose a mutual tariff on the United States (the United States)” as “retaliatory measures will only raise the costs of Australian consumers and pay inflation. His statements follow Trump’s decision to implement a 25 % tariff on all imported and aluminum steel.

AUD also faces pressure from the ongoing economic uncertainty and constant risks in China in China, the largest trading partner in Australia, where merchants are awaiting the main policy advertisements of Beijing.

Market participants are still focusing on the predictions of the Reserve Bank policy in Australia (RBA), especially after strong economic data expectations last week decreased to more price cuts. Economic growth exceeded predictions, which represents its first acceleration in more than a year.

The latest RBA report indicates a cautious position on monetary policy, focusing on the fact that reducing the February price does not indicate a commitment to constantly dilution.

Investors are now turning their attention to the issuance of the US Consumer Prices Index (CPI) in February on Wednesday for more ideas about inflation trends.

With the federal reserve in the domination period before the March 19 meeting, the central bank’s suspension will be rare this week.

The Australian dollar is struggling with the escalation of global trade tensions on market morale

• The US dollar index (DXY), which tracks the US dollar for six major currencies, hovers about 103.50 at the time of writing this report. However, Greenback has faced challenges due to an economic slowdown in the United States.
• President Trump reflected his decision to double the tariff on Canadian and aluminum steel to 50 %, a move he announced late on Tuesday. However, the White House confirmed to Reuters that the new definitions of 25 % on all imported and aluminum steel will remain valid on Wednesday, affecting the main American allies and suppliers, including Canada and Mexico.
• Trump described the economy as a “transitional period”, hinting into a possible slowdown. Investors took his remarks as an early signal of possible economic turmoil in the near future.
• Last week, Federal Reserve Chairman Jerome Powell reassured the market that the central bank does not see any immediate need to control monetary policy despite the increasing uncertainty. Mary Dali, President of San Francisco Marie Dali, chanted this feeling, noting that increased incumentium in business can reduce the demand but does not justify the change of the interest rate.
• The Vice Governor of RBA Andrew Hoser highlighted that the uncertainty in global trade is 50 years of height. Hauser warned that the uncertainty caused by US President Donald Trump’s tariff can push companies and families to delay planning and investment, and may burden economic growth.
• Bloomberg said on Tuesday, citing sources familiar with the matter, that trade and other negotiations between the United States and China are still alert. Chinese officials state that the United States has not made clear steps regarding the fentanel measures needed to relief the tariff. Meanwhile, a source familiar with the White House discussions indicated that there are currently ongoing plans to hold a personal meeting between the two leaders.
• China announced on Saturday that it will impose a 100 % tariff on Canadian oil, oil cakes, and peas, along with a 25 % tax on water and pork products from Canada. The move comes in retaliation for the customs tariff that Canada entered in October, and the escalation of trade tensions. This represents a new front in a broader trade conflict led by the tariff policies of US President Donald Trump. The customs duties were set to become valid on March 20.

Technical Analysis: The Australian dollar tests a nine -day barrier near 0.6300

The AUD/USD pair is traded near 0.6290 on Wednesday, with the technical analysis of the daily scheme that shows that the husband remains less than the SIA moving average for nine days (EMA), indicating twice the momentum in the short term. In addition, the 14 -day relative index (RSI) hovers slightly less than 50, which enhances the declining bias.

On the negative side, the AUD/USD pair in the area can move around the minimum for five weeks at 0.6187, registered on March 5.

The AUD/USD pair tests immediate resistance in EMA for nine days from 0.6294, followed by EMA for 50 days at 0.6306. The rest over this level may strengthen the short -term momentum, which may push the husband to rise for a period of three months at 0.6408, on February 21.

Aud/USD: Daily Chart