The AUD/USD has staged a recovery after hitting two-year lows, as speculation around potential US tariff adjustments added uncertainty to global markets. The Australian dollar, often considered a barometer for risk sentiment, saw renewed interest amid hints that the US may reassess existing trade policies, sparking cautious optimism among investors. This development follows a period of significant weakness for the pair, driven by economic headwinds and a strengthening US dollar
Source – FXStreet
Despite the rebound, market analysts remain wary of broader risks tied to global growth and trade dynamics. The US dollar continues to dominate due to its safe-haven appeal, and any shift in tariff policies could impact demand for risk assets, including the Australian dollar. Traders are closely watching upcoming data releases and geopolitical updates for further clarity on the trajectory of AUD/USD.
