Australian Dollar Falls as Tariff Concerns Lift US Dollar

AUD/USD Drops as Tariff Tensions Strengthen the US Dollar

Australian Dollar Slides on Renewed US Trade Pressure

The Australian Dollar (AUD) is under selling pressure on Monday, declining for the third straight session against the US Dollar (USD). The AUD/USD pair is falling as markets react to fresh tariff concerns after US President Donald Trump signaled that 12 to 15 tariff letters could be issued throughout the day.

Trump’s BRICS Tariff Threats Fuel USD Demand

In a tweet early Monday, Trump wrote:

"Any Country that aligns with the Anti-American policies of BRICS, will be charged an ADDITIONAL 10% Tariff. There will be no exception to this policy."

This escalation in trade rhetoric has sparked risk aversion, boosting the safe-haven US Dollar while weakening risk-sensitive currencies like the Aussie.

US Treasury Secretary Scott Bessent also warned that the US may roll back tariff rates to April 2 levels starting August 1 if trade negotiations fail to progress.

Australia’s Job Data Fails to Support AUD

The downside in AUD came despite a positive ANZ Job Advertisements print. According to ANZ, job ads increased 1.8% in June, reversing a 1.2% decline in May. However, strong employment indicators failed to offset global risk sentiment pressures.

Outlook

Unless market sentiment stabilizes or US trade threats de-escalate, the AUD/USD pair may remain on the back foot. Traders will monitor developments in US trade policy and Australian economic releases for short-term direction.

Stay informed on AUD/USD live analysis and charts for the latest updates and trade setups.

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