AUD/USD Rebounds Above 0.6000 Amid U.S. Recession Concerns
AUD/USD Rebounds Above 0.6000 Amid U.S. Recession Concerns
The AUD/USD pair rebounded to approximately 0.6015 during the early Asian session on Tuesday, recovering some of its previous losses.
The Australian Dollar (AUD) experienced fluctuations, peaking at 0.6120 US cents due to unverified reports of a U.S. tariff pause, before settling around 0.6000 US cents.
President Donald Trump's announcement of a 34% tariff on Chinese goods has led to reciprocal measures from China and threats of further tariffs, escalating global trade tensions.
These trade tensions have heightened concerns about a potential U.S. recession, influencing market sentiment and contributing to the AUD's volatility.
Despite global uncertainties, the Australian Securities Exchange (ASX) 200 index rose by 0.8%, reaching 7401.7 points.
Speculation about a potential 50 basis point interest rate cut by the RBA in May, coupled with reports of Chinese stimulus measures, has supported the AUD.
Wall Street experienced significant declines, marking its worst performance since the COVID-19 pandemic, due to uncertainties arising from new tariffs.
BlackRock CEO Larry Fink expressed concerns that the U.S. may already be in a recession, citing declining consumer spending and broader economic impacts.
