Australian Dollar Declines amid Trade War Concerns

The Australian dollar fell along with other commodity currencies today amid concerns about the planned tariffs in the United States that may hamper global growth.

Most economists believe that protectionism is detrimental to economy. Therefore, the prospect for trade wars led to concerns among investors, which make them less willing to purchase riskier currencies linked to raw materials. But the Aussie was especially vulnerable as it looks like US President Donald Trump singled out China, Australia’s biggest trading partner, as the primary target for tariffs.

AUD/USD was down from 0.7799 to 0.7793 as of 8:58 GMT today, though bounced off the daily low of 0.7770. EUR/AUD advanced from 1.5776 to 1.5808, reaching the high of 1.5826 intraday.

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