Australian Dollar strengthens as US Dollar weakens due to expectations of Fed rate cuts

• The Australian Dollar advanced as the Chinese government announced its annual policy statement for 2025 on Sunday.
• The AUD struggled as Trump instructed the Committee on Foreign Investment to limit Chinese investments in the US.
• The US Dollar struggles following the downbeat US economic data released last week.

The Australian Dollar (AUD) retraces its recent losses from the previous session on Monday following the Chinese government’s release of its annual policy statement for 2025 on Sunday. The statement details strategies to advance rural reforms and promote comprehensive rural revitalization. Optimism around China’s stimulus plans could strengthen the AUD, given China’s role as a key trading partner for Australia.

China’s state-supported developers are aggressively increasing land purchases at premium prices, driven by the government’s relaxation of home price restrictions aimed at revitalizing the troubled property market. In 2025 so far, 37% of land sales have closed at prices 20% or more above the asking price — a sharp rise from 14% in 2024 and just 4.6% in 2023, according to the China Index Academy.