The Australian Dollar (AUD) is trading sharply higher against the US Dollar (USD) on Tuesday, with AUD/USD rising to 0.6470, up nearly 1.5% intraday, as a combination of improved global sentiment and softer US Consumer Price Index (CPI) data boosts demand for risk-sensitive currencies.
Chinese Vice Foreign Minister Hua Chunying said on Friday, “China has ‘full confidence’ in its ability to manage United States (US) trade issues.”
The Australian Dollar (AUD) faced some pressure in the market after disappointing progress on US-China trade negotiations. Although the global risk environment remains positive, tariffs and trade policy concerns impact the Aussie’s movement.