FX.co ★ Australian Dollar Climbs on US-China Trade Hopes

On Friday, the Australian dollar surpassed the $0.64 mark, recovering from losses in the prior session. This uptick was fueled by enhanced optimism regarding the trade negotiations between the United States and China, which buoyed global market sentiment. China announced it is considering the feasibility of engaging in trade discussions after multiple overtures from U.S. officials. Earlier in the week, U.S. President Donald Trump pointed to potential trade agreements with India, Japan, and South Korea, while also expressing confidence in reaching a deal with China. Domestically, data revealed a 0.3% increase in Australian retail sales for March, slightly below the projected 0.4%. This, along with easing core inflation, has heightened market anticipation of an imminent rate cut by the Reserve Bank of Australia (RBA). It is broadly expected that the RBA will reduce its cash rate by 25 basis points to 3.85% in May, with further declines to 2.85% anticipated by the end of the year.