February 28, 2025 02:01 GMT
AUD: A$ Continues To Struggle In Increasingly Protectionist World
AUD
Soft risk appetite continues to weigh on Aussie following news that 25% tariffs on US imports from Canada and Mexico will go ahead on March 4 as well as an additional 10% on China, which is likely to indirectly impact Australia. AUD is generally weaker against most major currencies. AUDUSD is down 0.3% to 0.6220, close to the intraday low, breaching support at 0.6231. The USD index is moderately higher.
- Aussie is softening against the risk-sensitive yen with AUDJPY -0.5% to 92.94 after a low of 92.91. AUDEUR is 0.1% lower at 0.5993 after falling to 0.5989 and AUDGBP -0.2% to 0.4940 following a trough of 0.4939.
- Kiwi is also risk averse and like Australia NZ’s largest export destination is China and so AUDNZD is 0.1% higher at 1.1084 after a peak of 1.1088.
- Equities are selling off with the ASX down 0.8% and the Hang Seng -1.2% but the S&P e-mini only slightly higher. Oil prices have weakened with WTI -0.5% to $70.02/bbl. Copper is down 0.7% and iron ore slightly higher approaching $105.00/t.
- Later US January income/spending, PCE prices, merchandise trade and February MNI Chicago PMI are released. Elsewhere January German retail sales/unemployment, German/French/Italian February CPIs and Canadian December/Q4 GDP print. BoE’s Ramsden speaks.
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