Aussie Dollar Sinks as Tariff Deadline Triggers Risk-Off Panic in Markets
The Australian dollar (AUD/USD), a key risk-sensitive currency, has slipped to around 0.6550, pressured by growing global uncertainty and a shift toward safer assets ahead of the U.S. tariff decision on July 9. With the Reserve Bank of Australia expected to cut rates again, while the Federal Reserve keeps U.S. rates steady between 4.25%–4.50%, traders are rethinking their AUD bets.
Adding to the pressure, Australia’s May exports unexpectedly dropped 2.7%, narrowing its trade surplus. That weaker data came as U.S. President Trump confirmed tariff letters would be sent to trading partners—raising concerns of a broader trade conflict.
Technically, AUD/USD appears stuck under a potential double‑top near 0.6590, and sliding below 0.6535–0.6545 could trigger a sharper dip toward 0.6510. Still, the currency remains above its 50‑ and 200‑day EMAs, suggesting some underlying support.
As risk‑off sentiment deepens and markets prepare for further RBA easing and global trade volatility, AUD/USD may face more pressure. But a solid break above 0.6590 could renew bullish hopes—one to watch amid tightening global trade tensions.