The AUD/USD pair is under pressure as market sentiment turns risk-averse, driven by investor concerns surrounding the upcoming deadline for potential new U.S. tariffs under former President Donald Trump’s trade policies. As traders seek safer assets amid escalating economic uncertainty, the Australian dollar has retreated against the U.S. dollar, reflecting broader market caution.
This risk-off environment has led to decreased demand for risk-oriented currencies like the Aussie, especially as global investors weigh the potential implications of renewed trade tensions. With financial markets on edge ahead of the tariff deadline, the safe-haven appeal of the U.S. dollar is strengthening, putting additional downward pressure on AUD/USD despite a relatively calm domestic economic backdrop in Australia.
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