Global Tariff Uncertainty Supports Aussie Gains
The Australian Dollar (AUD) remains strong despite two consecutive days of losses. Growing expectations of a weaker US Dollar drive this strength. The AUD/USD pair reached $0.6430 amid USD weakness, but a subsequent rebound in the Greenback has pushed the pair lower. The Federal Reserve’s April Beige Book signalled weakening economic conditions across several US regions, highlighting softening employment and mixed consumer spending. However, the US Manufacturing PMI rose slightly to 50.7 in April from 50.2 in March, as shown in the chart below.
AUD/USD Technical Analysis – Bullish Momentum
The 4-hour chart for AUD/USD shows that the pair rallied to test the resistance at $0.6430. This move was driven by uncertainty surrounding Powell in response to Trump’s earlier comments. However, Trump later clarified that he had no plans to fire Powell, which lifted the US Dollar Index from its oversold region and triggered a correction in AUD/USD from $0.6430. The pair remains highly volatile as tariff uncertainty continues to dominate market sentiment. A brief correction may lead to another advance toward the $0.65 level.
