01.08.202502:38:26UTC+00Aussie Holds After Dodging US Tariff Hikes

The Australian dollar stabilized at approximately $0.643 on Friday, ending a six-day decline. This stabilization came as Australia managed to avoid the recent US tariff hikes, with most imports maintaining the 10% duty. On Thursday, President Trump signed an executive order to adjust "reciprocal" tariffs on various nations, increasing rates to between 10% and 41%. Nations not explicitly listed in the order will face a standard 10% duty, while transshipped goods will be subject to an additional 40% tariff, effective seven days post-announcement. Australia, despite previous threats of a tariff increase to between 15% and 20%, retained the 10% rate due to mentioned advancements in trade and security negotiations. The White House highlighted these developments, noting Australia is among the countries close to securing agreements with the US. At the same time, the Australian dollar faced downward pressure attributed to a steep decline in copper prices, which fell more than 18% following the US's clarification that raw copper forms are exempt from the new tariff measures. Additionally, a dovish outlook from the Reserve Bank of Australia (RBA) contributed to these pressures, positioning the AUD for its steepest weekly decline since early March.