Australian Dollar hovers near multi-month lows amid Trump tariff threats

• The Australian Dollar holds losses as Trump’s tariff threats have created a headwind for the risk-sensitive currencies.
• The AUD struggles as Beijing begins retaliation against Trump trade sanctions, launching a probe into US-based Nvidia.
• The US Dollar gained ground following a hotter-than-expected US PPI report released on Thursday.

The Australian Dollar (AUD) continues to struggle against the US Dollar (USD) on Friday. The tariff threats from Trump’s administration have boosted the US Dollar (USD) across the board and created a headwind for the AUD/USD pair. Additionally, speculations about a potential 10% tariff on Chinese goods might drag the AUD lower as China has been the largest trading partner of Australia.

The AUD received support after the release of domestic mixed employment data on Thursday. The seasonally adjusted Employment Change rose by 35,600, bringing the total number of employed people to 14,535,500 in November. Meanwhile, the Unemployment Rate dropped to 3.9%, the lowest since March, lower than market estimates of 4.2%.