Australian Dollar receives support as private sector activity expands in April – Crypto News – Crypto News
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Australian Dollar extends recovery as USD slides toward multi-year lows Australian Dollar extends recovery as USD slides toward multi-year lows

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Australian Dollar receives support as private sector activity expands in April – Crypto News

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10 months ago

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  • The Australian Dollar retraces its losses registered in the previous session.
  • Australia’s Judo Bank Purchasing Managers Index indicated that private sector activity grew for the seventh straight month in April.
  • President Trump reassured investors that he has no intention of removing Fed’s Powell, helping ease concerns about central bank independence.

The Australian Dollar (AUD) recovered some ground on Wednesday, retracing its losses from the previous session. The AUD/USD pair stabilized following the release of preliminary data from Australia’s Judo Bank Purchasing Managers Index (PMI), which showed that private sector activity expanded for the seventh consecutive month in April, driven by continued growth in both manufacturing and services output.

The Judo Bank Manufacturing PMI edged down to a two-month low of 51.7 in April, compared to 52.1 in March. While manufacturing output remained in expansion territory, the increase in new orders was modest. Meanwhile, the Services PMI dipped slightly to 51.4 from 51.6 in the previous month, and the Composite PMI also eased to 51.4 from 51.6.

The AUD/USD pair came under pressure as the US Dollar (USD) strengthened, supported by comments from US Treasury Secretary Scott Bessent, who described the ongoing tariff standoff as “unsustainable,” suggesting a potential move toward de-escalation. Market sentiment was further boosted by US President Donald Trump, who reassured investors that he has no intention of removing Federal Reserve (Fed) Chair Jerome Powell, helping ease concerns about central bank independence and policy direction.

Australian Dollar advances as Trump says that tariffs on Chinese goods wouldn’t be high

  • President Trump also expressed optimism about ongoing trade negotiations with China, stating that discussions were progressing well. Trump added that while tariffs on Chinese goods wouldn’t be as high as 145%, they also wouldn’t be eliminated entirely.
  • The White House announced on Tuesday that the Trump administration is making headway in negotiating trade deals aimed at easing the broad tariffs introduced earlier this month. According to US Press Secretary Karoline Leavitt, 18 countries have already submitted trade proposals to the US, and President Trump’s trade team is scheduled to meet with representatives from 34 nations this week to explore potential agreements.
  • Federal Reserve Board Governor Adriana Kugler stated on Tuesday that the unexpectedly large US import tariffs are likely to push prices higher. As reported by Reuters, Kugler emphasized that the Federal Reserve should maintain current short-term interest rates until inflationary pressures begin to ease.
  • The US Consumer Price Index (CPI) inflation eased to 2.4% year-over-year in March, down from 2.8% in February and below the market forecast of 2.6%. Core CPI, which excludes food and energy prices, rose 2.8% annually, compared to 3.1% previously and missing the 3.0% estimate. On a monthly basis, headline CPI dipped by 0.1%, while core CPI edged up by 0.1%.
  • Reserve Bank of Australia’s (RBA) March 31–April 1 Meeting Minutes indicated ongoing uncertainty around the timing of the next interest rate adjustment. Although the Board considered the May meeting a suitable point to review monetary policy, it stressed that no decisions had been made in advance. The Board also pointed to both upside and downside risks facing Australia’s economy and inflation trajectory.
  • China’s economy grew at an annual rate of 5.4% in the first quarter of 2025, matching the pace seen in Q4 2024 and surpassing market expectations of 5.1%. On a quarterly basis, GDP rose by 1.2% in Q1, following a 1.6% increase in the previous quarter, falling short of the forecasted 1.4% gain.

Australian Dollar hovers around 0.6400, nine-day EMA acts as immediate support

The AUD/USD pair is hovering near 0.6390 on Wednesday, with daily chart technicals signaling a bullish bias. The pair remains above the nine-day Exponential Moving Average (EMA), while the 14-day Relative Strength Index (RSI) holds firm above the 50 mark—both indicators pointing to continued upward momentum.

On the upside, immediate resistance lies at the recent four-month high of 0.6439, reached on April 22. A clear break above this level could open the door for a rally toward the five-month high of 0.6515.

To the downside, initial support is seen at the nine-day EMA near 0.6350, followed by stronger support around the 50-day EMA at 0.6295. A sustained move below these levels could invalidate the current bullish outlook and expose the pair to deeper losses, potentially targeting the March 2025 low near 0.5914.

AUD/USD: Daily Chart

Australian Dollar PRICE Today

The table below shows the percentage change of Australian Dollar (AUD) against listed major currencies today. Australian Dollar was the strongest against the Swiss Franc.

USD EUR GBP JPY CAD AUD NZD CHF
USD 0.16% 0.17% 0.16% 0.16% -0.47% -0.15% 0.33%
EUR -0.16% -0.00% 0.00% -0.01% -0.58% -0.30% 0.18%
GBP -0.17% 0.00% 0.02% -0.01% -0.59% -0.32% 0.20%
JPY -0.16% 0.00% -0.02% -0.02% -0.54% -0.35% 0.19%
CAD -0.16% 0.01% 0.01% 0.02% -0.52% -0.28% 0.22%
AUD 0.47% 0.58% 0.59% 0.54% 0.52% 0.27% 0.76%
NZD 0.15% 0.30% 0.32% 0.35% 0.28% -0.27% 0.52%
CHF -0.33% -0.18% -0.20% -0.19% -0.22% -0.76% -0.52%

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Australian Dollar from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent AUD (base)/USD (quote).

Australian Dollar FAQs

One of the most significant factors for the Australian Dollar (AUD) is the level of interest rates set by the Reserve Bank of Australia (RBA). Because Australia is a resource-rich country another key driver is the price of its biggest export, Iron Ore. The health of the Chinese economy, its largest trading partner, is a factor, as well as inflation in Australia, its growth rate and Trade Balance. Market sentiment – whether investors are taking on more risky assets (risk-on) or seeking safe-havens (risk-off) – is also a factor, with risk-on positive for AUD.

The Reserve Bank of Australia (RBA) influences the Australian Dollar (AUD) by setting the level of interest rates that Australian banks can lend to each other. This influences the level of interest rates in the economy as a whole. The main goal of the RBA is to maintain a stable inflation rate of 2-3% by adjusting interest rates up or down. Relatively high interest rates compared to other major central banks support the AUD, and the opposite for relatively low. The RBA can also use quantitative easing and tightening to influence credit conditions, with the former AUD-negative and the latter AUD-positive.

China is Australia’s largest trading partner so the health of the Chinese economy is a major influence on the value of the Australian Dollar (AUD). When the Chinese economy is doing well it purchases more raw materials, goods and services from Australia, lifting demand for the AUD, and pushing up its value. The opposite is the case when the Chinese economy is not growing as fast as expected. Positive or negative surprises in Chinese growth data, therefore, often have a direct impact on the Australian Dollar and its pairs.

Iron Ore is Australia’s largest export, accounting for $118 billion a year according to data from 2021, with China as its primary destination. The price of Iron Ore, therefore, can be a driver of the Australian Dollar. Generally, if the price of Iron Ore rises, AUD also goes up, as aggregate demand for the currency increases. The opposite is the case if the price of Iron Ore falls. Higher Iron Ore prices also tend to result in a greater likelihood of a positive Trade Balance for Australia, which is also positive of the AUD.

The Trade Balance, which is the difference between what a country earns from its exports versus what it pays for its imports, is another factor that can influence the value of the Australian Dollar. If Australia produces highly sought after exports, then its currency will gain in value purely from the surplus demand created from foreign buyers seeking to purchase its exports versus what it spends to purchase imports. Therefore, a positive net Trade Balance strengthens the AUD, with the opposite effect if the Trade Balance is negative.

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