The Australian dollar weakened, falling below $0.627 on Thursday and ending a three-day streak of gains.
Aussie dips as US dollar strengthens
This dip came as the US dollar strengthened ahead of important US economic data releases. Despite this, the Aussie remains supported by easing global trade war fears, following more cautious tariff measures from both the US and China. A planned call between Presidents Trump and Xi Jinping is also fueling optimism that further trade escalation can be avoided and existing tariffs potentially reversed. Domestically, Australian trade data showed a narrowing surplus in December, with export growth slowing and imports accelerating.
RBA easing expected, Aussie dips
Market sentiment is increasingly pointing towards a potential interest rate cut by the Reserve Bank of Australia this month, driven by moderating inflation and signs of a slowing economy.
