The Australian dollar has reversed its early gains against the US dollar, declining approximately 0.23% to trade near 0.7065 during Monday’s late Asian session. The currency’s dip follows a broader pattern of weakness in the AUD, which underperformed against several major currencies. The recent decline in the Aussie coincides with a subdued US dollar, which, although weaker against other global peers, showed relative strength against the Australian dollar amid ongoing US trade policy uncertainties.
These uncertainties were fueled by a recent Supreme Court ruling that challenged the scope of President Donald Trump’s tariff powers, accusing him of overreach under the International Emergency Economic Powers Act. In response, the administration announced plans to impose a 15% global tariff on imports, aiming to uphold trade pressures. This development has injected volatility into the foreign exchange markets, influencing the USD’s performance and adding pressure on the Australian dollar.
Technically, the AUD/USD pair has been confined within a narrow range over the past week, oscillating between around 0.7045 and 0.7100. The 20-day exponential moving average at roughly 0.7015 remains supportive, with the current price holding above this level, suggesting a cautiously bullish outlook in the short term. The relative strength index, hovering between 40 and 60, indicates moderate momentum, with potential for further moves depending on future market sentiment.
Overall, the dynamics of trade policy and monetary signals continue to influence the currency pair’s movement. Market participants will closely watch technical developments and geopolitical updates to gauge whether the Australian dollar can regain upward momentum or if the current trend persists amid broader market tensions.
