Australian Dollar Falls as Trump Plans New Tariff Letters
The Australian Dollar dropped again on Monday, marking its third straight day of decline. This happened because former U.S. President Donald Trump is preparing to send letters to countries that haven’t signed trade deals with the U.S. These letters will warn them about possible new tariffs, and are expected to be sent by July 9.
Trump also posted on social media that any country supporting BRICS policies that go against American interests will face a 10% tariff. He made it clear there will be no exceptions to this rule.
Back in Australia, new job data showed some positive signs. Job advertisements rose by 1.8% in June, which is a good change after a 1.2% drop in May. This means hiring demand in the country is growing again.
Even though this job data is good news, the main focus in the market is on global trade risks. Traders are now waiting to see what the Reserve Bank of Australia (RBA) will say in their meeting on Tuesday, especially about any possible changes in interest rates.
Impact:
The Australian Dollar might remain under pressure. Rising trade tensions could affect global markets, and the RBA could take a cautious approach in upcoming policy decisions.