Australian Dollar receives downward pressure from Trump tariff threat on Chinese products

• The Australian Dollar declined as traders adopted caution due to concerns over Donald Trump’s proposals to raise tariffs.
• The AUD/USD pair appreciated more than 1% on Thursday after the Fed announced a 25 basis point rate cut.
• Fed Chair Jerome Powell emphasized that the central bank will continue to assess economic data to decide future rate directions.

The Australian Dollar (AUD) edges lower against the US Dollar (USD) on Friday. The downside risks for the AUD/USD pair remain as the US Dollar (USD) may receive support from the concerns about Donald Trump’s proposals to raise tariffs on Chinese goods, given that Australia is one of the largest exporters to China.

However, the AUD/USD pair appreciated more than 1% as the US Dollar (USD) faced challenges following the Federal Reserve’s interest rate decision in the previous session. Additionally, the Aussie Dollar received support from China’s trade balance, which was better than expected and released on Thursday.