As the new US president enacts sweeping governmental cuts, imposes tariffs, and intensifies immigration crackdowns, the travel landscape—both domestic and international—faces unprecedented changes. Wall Street experienced a sharp drop overnight, and the Australian Securities Exchange (ASX) is expected to follow suit on Friday. The Australian dollar has also seen a decline as President Donald Trump announces additional tariffs on China.
In a notable development, the corporate regulator ASIC revealed that it has shut down over 10,000 investment scam attempts since it began monitoring them. This comes amid confusion regarding the reinstatement of previously paused 25% tariffs on China and other countries after negotiations last month.
However, it is Trump’s latest comment regarding China that is poised to further unsettle Australian markets today: “China will likewise be charged an additional 10% Tariff on that date.”
The Commonwealth Bank of Australia’s (CBA) note highlights the impact on the Australian dollar. The AUD/USD fell approximately 50 pips overnight in response to the tariff announcements, currently trading near 0.6240. The AUD has also weakened against all major currencies, with the exception of the New Zealand dollar (NZD).
The announcement of the additional 10% tariff on US imports from China has significantly weighed on both AUD/USD and NZD/USD pairs. Analysts are closely monitoring how these developments will unfold, particularly in relation to trade relations and economic stability.
As markets brace for further volatility, investors are urged to remain vigilant and consider the potential long-term effects of these tariffs on the Australian economy. The political landscape continues to evolve, and its repercussions are likely to resonate far beyond immediate market reactions.
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