AUD/USD edges higher despite tariff concerns

• Trump reiterates tariff threats on Mexico, Canada, and China.
• Fed maintains cautious stance on inflation risks, holding rates trusty.
• AUD/USD hovers shut to 0.6215 amid RBA payment reduce bets and China’s financial slowdown.

The AUD/USD pair trades a puny elevated at 0.6215 within the Asian session on Friday however remains under stress on account of original tariff threats from US President Trump. Market participants continue to wait for a dovish shift from the Reserve Monetary institution of Australia (RBA) in February, including to the Aussie’s contrivance back risks. 

Change tensions weigh on sentiment

Trump reaffirmed plans to impose tariffs on Mexico, Canada, and China, fueling safe-haven ask for the US Greenback and claiming to belief to impose 100% tariffs on BRICS international locations within the event that they fight to replace the US Greenback (USD) with a brand new forex in global switch. Trump posted on TruthSocial: “We’re going to require a dedication from these apparently adversarial international locations that they’ll neither dangle a brand new BRICS forex, nor back any diversified forex to replace the mighty US Greenback or, they can face 100% tariff,

On the suggestions front, the US Core Inner most Consumption Expenditures (PCE) Charge Index rose 0.2% month-on-month as anticipated, whereas annual core PCE remained unchanged at 2.8%. Fed officers, including Governor Michelle Bowman, warned of lingering upside inflation risks, reinforcing expectations that payment cuts will be delayed.

In Australia, the most recent knowledge reinforced expectations that the RBA will pivot to policy easing. Q4 inflation figures came in lower than anticipated, with trimmed mean CPI easing to a pair.2%, below the RBA’s earlier forecast of three.4%. Traders now fully be aware in a 25-foundation-point payment reduce at the February assembly.

Technical overview

AUD/USD remains range-trail, lacking solid directional momentum. The Relative Strength Index (RSI) is at 47, mute in negative territory however recuperating. The MACD histogram displays reducing green bars, suggesting fading bullish momentum.
Fast resistance is considered at 0.6230 at the the 20-day Straightforward Shifting Moderate (SMA). On the contrivance back, key strengthen lies at 0.6200, with a break lower opening the door to extra declines toward 0.6170. Till a decisive transfer happens, the pair is at threat of consolidate within the present range.

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