Australian Dollar slumps to one-month low amid renewed US-China trade tensions

Source Fxstreet
  • AUD/USD plunges to one-month lows after Trump threatens a “massive increase” in tariffs on Chinese imports.
  • Australia’s close trade ties with China amplify downside pressure on the Aussie amid renewed trade tensions.
  • US government shutdown enters day 10, with Budget Director Vought confirming federal layoffs have begun.

The Australian Dollar (AUD) slumps against the US Dollar (USD) on Friday, with AUD/USD plunging to over one-month lows after US President Donald Trump threatened a “massive increase” in tariffs on Chinese imports, reigniting fears of a renewed trade war between the world’s two largest economies.

Given Australia’s close trade ties with China, the comments weighed heavily on the Aussie as traders trimmed exposure to risk-sensitive currencies. At the time of writing, AUD/USD trades around 0.6484, down nearly 1.0% on the day and on track to post a weekly loss.

At the same time, the Greenback also fell against its major counterparts, as Trump’s familiar trade-war theatrics once again cast a negative shadow over the United States (US) economic outlook and dented sentiment toward US assets. The US Dollar Index (DXY), which tracks the Greenback’s value against a basket of six major currencies, snapped a four-day winning streak and eased from a two-month high, down 0.38% to trade around 99.00.

In his post on Truth Social, Trump accused China of becoming “very hostile” and claimed Beijing had sent letters to multiple countries outlining plans to impose export controls on rare-earth elements and other critical materials, describing the move as an attempt to “clog the markets.”

He warned that the United States is considering “a massive increase of tariffs on Chinese products” as a countermeasure and suggested that a planned meeting with Chinese President Xi Jinping at the upcoming APEC summit might no longer take place.

From a broader perspective, the latest developments come at a delicate time for global markets already contending with a prolonged US government shutdown. The impasse in Washington has delayed key data releases and fueled uncertainty over federal spending. Earlier today, Trump’s Budget Director Russell Vought posted on X that “the RIFs have begun,” confirming that layoffs of federal workers are now underway as the shutdown stretches into its tenth day.

Australian Dollar Price Today

The table below shows the percentage change of Australian Dollar (AUD) against listed major currencies today. Australian Dollar was the strongest against the New Zealand Dollar.

USD EUR GBP JPY CAD AUD NZD CHF
USD -0.32% -0.36% -0.67% -0.09% 1.08% 0.65% -0.65%
EUR 0.32% 0.00% -0.42% 0.23% 1.44% 0.74% -0.24%
GBP 0.36% -0.00% -0.41% 0.19% 1.44% 0.96% -0.29%
JPY 0.67% 0.42% 0.41% 0.72% 1.86% 1.38% 0.16%
CAD 0.09% -0.23% -0.19% -0.72% 1.12% 0.72% -0.47%
AUD -1.08% -1.44% -1.44% -1.86% -1.12% -0.45% -1.70%
NZD -0.65% -0.74% -0.96% -1.38% -0.72% 0.45% -1.25%
CHF 0.65% 0.24% 0.29% -0.16% 0.47% 1.70% 1.25%

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Australian Dollar from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent AUD (base)/USD (quote).

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Canada Unemployment Rate expected to edge higher in September Statistics Canada will release its Labour Force Survey on Friday, and markets are bracing for a mixed print.
Author  FXStreet
10 hours ago
Statistics Canada will release its Labour Force Survey on Friday, and markets are bracing for a mixed print.
placeholder
Gold hits pause on record run; but eyes eighth weekly gainGold prices edged lower on Friday as investors booked profits following the metal's surge past the $4,000-an-ounce mark earlier this week.
Author  Reuters
11 hours ago
Gold prices edged lower on Friday as investors booked profits following the metal's surge past the $4,000-an-ounce mark earlier this week.
placeholder
Yen Faces Largest Weekly Drop in a Year, Raising Prospects of Government InterventionOn Friday, the USD/JPY exchange rate hovered around 153, maintaining its highest level in eight months, with intraday peaks hitting 153.27.
Author  TradingKey
11 hours ago
On Friday, the USD/JPY exchange rate hovered around 153, maintaining its highest level in eight months, with intraday peaks hitting 153.27.
placeholder
USD/CAD Price Forecast: Targets six-month highs near 1.4050 as bullish bias prevailsUSD/CAD continues to gain ground for the fourth successive day, trading around 1.4030 during the early European hours on Friday.
Author  FXStreet
11 hours ago
USD/CAD continues to gain ground for the fourth successive day, trading around 1.4030 during the early European hours on Friday.
placeholder
Pound Sterling slides further against US Dollar despite dovish Fed remarksThe Pound Sterling (GBP) holds onto losses near its two-month low around 1.3280 against the US Dollar (USD) during the European trading session on Friday.
Author  FXStreet
11 hours ago
The Pound Sterling (GBP) holds onto losses near its two-month low around 1.3280 against the US Dollar (USD) during the European trading session on Friday.
Related Instrument
goTop
quote