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AUD: A$ Underperforming As Trump Announces First Tariffs, FOMC Minutes Later

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AUDUSD has been struggling since US President-elect Trump announced that one of the first things he’ll do in office is add another 10% to existing tariffs on China and introduce 25% on Mexico and Canada. This has driven a 0.5% increase in the USD BBDXY index and AUDUSD is down 0.6% to 0.6465 off the intraday low of 0.6434.

  • The Australian press reported an RBA discussion before the US election, which found that a complete Republican victory would weigh on Australia’s exports, given its high exposure to China, and also the AUD. In 2023, over 36% of the total went to China compared to 3.7% to the US.
  • Aussie is lower against the risk-averse yen. AUDJPY is down 0.7% to 99.59 after a low of 99.07. AUDNZD is 0.1% softer at 1.1115. AUDEUR is down 0.2% to 0.6185 after 0.6170 and AUDGBP -0.2% to 0.5162.
  • The equity sell off across most of the region is also weighing on AUD. The ASX is down 0.4% and CSI 300 -0.3% with the S&P e-mini -0.2%. Commodities are also softer with WTI 0.1% lower, copper -0.7% but iron ore has bounced towards $103/t.
  • Later the FOMC November meeting minutes are published and the ECB’s McCaul and BoE’s Pill speak. US September house prices, October new home sales, November consumer confidence and November Richmond, Philly and Dallas Fed indices print. 
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AUDUSD has been struggling since US President-elect Trump announced that one of the first things he’ll do in office is add another 10% to existing tariffs on China and introduce 25% on Mexico and Canada. This has driven a 0.5% increase in the USD BBDXY index and AUDUSD is down 0.6% to 0.6465 off the intraday low of 0.6434.

  • The Australian press reported an RBA discussion before the US election, which found that a complete Republican victory would weigh on Australia’s exports, given its high exposure to China, and also the AUD. In 2023, over 36% of the total went to China compared to 3.7% to the US.
  • Aussie is lower against the risk-averse yen. AUDJPY is down 0.7% to 99.59 after a low of 99.07. AUDNZD is 0.1% softer at 1.1115. AUDEUR is down 0.2% to 0.6185 after 0.6170 and AUDGBP -0.2% to 0.5162.
  • The equity sell off across most of the region is also weighing on AUD. The ASX is down 0.4% and CSI 300 -0.3% with the S&P e-mini -0.2%. Commodities are also softer with WTI 0.1% lower, copper -0.7% but iron ore has bounced towards $103/t.
  • Later the FOMC November meeting minutes are published and the ECB’s McCaul and BoE’s Pill speak. US September house prices, October new home sales, November consumer confidence and November Richmond, Philly and Dallas Fed indices print.