Higher China Tariffs Weigh on AUDUSD

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Higher China Tariffs Weigh on AUDUSD

Since October 2024, the AUD/USD pair has faced persistent downward pressure, primarily due to U.S. dollar strength. Yesterday, it declined again after

Since October 2024, the AUD/USD pair has faced persistent downward pressure, primarily due to U.S. dollar strength. Yesterday, it declined again after failing to break above key moving averages, but this time, the drop was triggered by the U.S. trade tariffs on China, Australia’s largest trading partner.

AUD/USD Chart Daily – MAs Keeping Buyers Under ControlChart AUDUSD, D1, 2025.03.04 00:08 UTC, MetaQuotes Ltd., MetaTrader 5, Demo

Despite a brief recovery in February, where the pair managed to climb above 0.6250, buyers struggled to maintain momentum. The 50 SMA on the daily chart acted as strong resistance, preventing further upside. Similarly, on the daily chart, moving averages have consistently pushed prices lower since late January, making it difficult for bulls to regain control.

In February, AUD/USD  broke below its 2022 lows, dropping to levels not seen since 2020, falling under 0.61. The continued inability to break through resistance suggests that bearish sentiment remains dominant.

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