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.
Further consolidation appears likely; softer underlying tone suggests a lower range of 0.6585/0.6625. In the longer run, Australian Dollar (AUD) is neutral now, and it is likely to trade between 0.6545 and 0.6655 for now, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
The AUD/USD pair claws back some of its early losses and rebounds to near 0.6650 during the European trading session on Thursday. The Aussie pair fell sharply, earlier in the day, to near 0.6615 after the Australian Bureau of Statistics showed that employment unexpectedly fell in August.