empty
24.01.2025 12:49 PM
AUD/USD: After Trump's Statement on a Possible Trade Deal with China, the Australian Dollar Gains Momentum

This image is no longer relevant

The AUD/USD pair has broken out of its two-day trading range, reaching a new monthly high. Spot prices are displaying positive momentum, pushing beyond the 50-day Simple Moving Average (SMA) and positioning for further gains amid U.S. dollar weakness.

This image is no longer relevant

The U.S. Dollar Index, which tracks the greenback against a basket of currencies, is falling to a new monthly low on expectations that the Federal Reserve will cut interest rates by the end of the year.

This image is no longer relevant

These expectations have been bolstered by comments from U.S. President Donald Trump, who called for immediate rate cuts. Combined with overall market optimism, this has weakened the dollar's safe-haven status and supported the rally in AUD/USD.

Global risk sentiment received an additional boost after Trump stated his preference for avoiding tariffs on China and highlighted the possibility of reaching a trade agreement. These remarks have eased inflationary concerns and contributed to a decline in U.S. Treasury yields, further pressuring the dollar. Additionally, technical buying above the 0.6300 level has driven the intraday rise in AUD/USD. The Relative Strength Index (RSI) has confidently crossed the 50-level on the daily chart in a positive direction, while the 9-day Exponential Moving Average (EMA) has moved above the 14-day EMA, further signaling potential for continued growth.

With the recent gains, spot prices have risen by approximately 200 points from the lowest levels reached earlier this month and are on track to break a three-week losing streak.

For better trading opportunities today, attention should focus on the release of preliminary U.S. PMI data, which could provide additional momentum during the early North American session. Moving into next week, Monday's official Chinese PMI figures will be key to influencing sentiment regarding the Australian dollar, a currency closely tied to China's economic performance.

Irina Yanina,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

GBP/JPY. Analysis and Forecast

The GBP/JPY pair is retreating from the psychological level of 190.00, or a two-week high reached earlier today. Following disappointing UK PMI data, selling pressure has intensified, pulling spot prices

Irina Yanina 18:16 2025-04-23 UTC+2

Market walks through minefield

If the market can rally this much on hints from Treasury Secretary Scott Bessent about de-escalation in the trade conflict with China, imagine how high the S&P 500 could jump

Marek Petkovich 12:35 2025-04-23 UTC+2

The Likelihood of a Euro Reversal to the South Is Increasing

As expected, the ECB cut all key interest rates by a quarter-point, bringing the deposit rate down to 2.25%. At this meeting, no new staff projections were released, and given

Kuvat Raharjo 12:01 2025-04-23 UTC+2

Markets Await a Massive Rally if the U.S. Starts Real Negotiations with China (There is a likelihood of continued growth in #NDX and Ethereum)

A new wave of euphoria has swept through the markets. Many believe it's not a coincidence: take everything away from a person and then provide them with even the smallest

Pati Gani 09:03 2025-04-23 UTC+2

What to Pay Attention to on April 23? A Breakdown of Fundamental Events for Beginners

A considerable number of macroeconomic events are scheduled for Wednesday. All of them are Purchasing Managers' Index (PMI) reports for April in the services and manufacturing sectors. The indices will

Paolo Greco 07:01 2025-04-23 UTC+2

GBP/USD Overview – April 23: The British Pound Can't Stop Smiling

On Tuesday, the GBP/USD currency pair traded much more calmly, yet again showed signs of a "maxed-out flat" pattern. As previously noted, the US dollar has only had two behaviors

Paolo Greco 04:56 2025-04-23 UTC+2

EUR/USD Overview – April 23: Another Calm Before Another Collapse?

The EUR/USD currency pair traded more calmly on Tuesday than on Monday. The US dollar managed to avoid another fall, but it's too early to celebrate. The greenback can collapse

Paolo Greco 04:56 2025-04-23 UTC+2

USD/JPY. On the Threshold of the 139th Figure

The USD/JPY pair has been in a consistent downtrend for the fourth consecutive week. On Tuesday, sellers pushed the pair to the edge of the 139.00 area, hitting the lowest

Irina Manzenko 00:46 2025-04-23 UTC+2

The Dollar Has Been Replaced. Nature Abhors a Vacuum

Fear paralyzes, but action persists. Investors are slowly overcoming their concerns over Donald Trump's attacks on the independence of the Federal Reserve and are starting to lock in profits

Marek Petkovich 00:08 2025-04-23 UTC+2

Bitcoin Took Its Chance

Slow and steady wins the race! Bitcoin quietly broke through to its highest levels since early March amid Donald Trump's attacks on Jerome Powell. When the independence of the Federal

Marek Petkovich 00:08 2025-04-23 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.