Ella 
AUD/USD continued its third straight session of decline during Friday’s Asian session, trading around 0.6390. The Australian dollar (AUD) remains under pressure as progress in US-China trade talks stalls. Given the close economic ties between Australia and China, any pressure on the Chinese economy tends to weigh on the AUD.
According to the Global Times – citing the Chinese Embassy in the US – Beijing is unlikely to reduce tariffs before the upcoming Swiss talks. This has added to market uncertainty and dampened risk sentiment.
In the US, President Trump has taken a tough stance on China’s trade policy after appointing a new envoy to Beijing. Despite discussions about tariff exemptions, the government seems cautious, with Trump saying they are “not looking for that many exemptions.”
Meanwhile, China is reportedly considering major changes to its real estate market – banning pre-sales of homes and only allowing completed properties to be sold. The move is aimed at stabilizing the real estate sector and is part of a wider reform plan that is still being worked out. The regulation will apply to future land sales, with the exception of public housing, and local governments will have flexibility in implementation.
The U.S. Dollar Index (DXY), which measures the value of the U.S. dollar (USD) against a basket of currencies, is currently trading around 100.60, supported by strong U.S. economic data and expectations of long-term yield differentials. However, initial optimism surrounding a U.S.-UK trade deal has faded as it became clear that the existing 10% tariffs will remain in place.
You Might Be Interested In:
- USD/INR extends gains on cautious Fed policy outlook, India-Pakistan tensions
- USD/CAD maintains negative bias trading above 1.3800 on the back…
- USD/INR rises as traders adopt cautious stance ahead of Fed…
