25.04.202502:20:30UTC+00Australian Dollar Eases on Greenback Strength

The Australian dollar fell below $0.64 on Friday, reversing some of the previous day's gains as the US dollar grew stronger amid signs of diminishing global trade tensions. Investor sentiment improved following US President Donald Trump's confirmation that trade talks with China are ongoing, despite Beijing's denial. Progress in negotiations with Japan and South Korea also became evident. Furthermore, Trump moderated his tone regarding Federal Reserve Chair Jerome Powell, clarifying that he did not plan to replace him. This move reassured markets and bolstered the dollar. Domestically, data earlier in the week indicated that Australian private sector activity expanded for the seventh consecutive month in April, with solid growth observed in both manufacturing and services sectors. Despite these robust economic indicators, the Reserve Bank of Australia is widely expected to implement another 25 basis point rate cut in May, as the nation braces for potential economic repercussions from newly introduced US tariffs.