FX.co ★ Australian Dollar Steady as Canberra Downplays U.S. Tariffs Impact

On Thursday, the Australian dollar remained stable around $0.63, despite the sweeping new tariffs announced by U.S. President Trump affecting the country's trading partners. Prime Minister Anthony Albanese clarified that his administration would refrain from imposing reciprocal tariffs, noting the minor role the U.S. plays in Australia's trade, with less than 5% of Australian exports directed to America. He stressed that Australia’s ongoing strategic push to diversify trade relationships with Asian markets aims to bolster local enterprises. Nonetheless, the latest trade statistics reveal a contraction in Australia’s exports in February, accompanied by a record surge in imports, indicating potential issues for the nation's trade balance. This expanding trade deficit may raise concerns regarding both international demand and domestic consumer trends, potentially impacting the Australian dollar and the economic forecast in the months ahead.