The Australian Dollar (AUD) has shown resilience, with the AUD/USD pair recovering gains above the 0.6200 mark. This recovery comes on the back of upbeat economic data from China, specifically the February Caixin Manufacturing PMI. The positive sentiment surrounding the peace talks between Europe and Ukraine is adding to the pressure on the US Dollar, providing further support to the Aussie. Meanwhile, a broad upsurge in the cryptocurrency market also bolsters the Australian currency's rebound.
Despite these positive developments, looming US tariffs present a significant challenge for the AUD/USD pair. The EUR/USD pair is holding steady above 1.0400 early Monday, buoyed by Europe's intensified efforts to secure peace in Ukraine. However, uncertainty surrounds the timing of the European Union's measures. Markets were caught off guard when former President Donald Trump indicated that the 25% tariffs on Canada and Mexico would be enacted following a one-month delay, set to expire next Tuesday.
The pressure on the US Dollar is compounded by the broad cryptocurrency upsurge and optimistic Chinese PMI data. These factors collectively contribute to keeping the AUD/USD afloat as investors await the release of EU inflation data. The ongoing Europe-Ukraine peace talks are playing a pivotal role in weighing down the US Dollar, further aiding the Australian Dollar's performance.
In contrast, the Euro is firming up due to Europe's renewed push for peace in Ukraine. The EUR/USD pair's resilience reflects optimism in diplomatic efforts aimed at resolving the conflict. However, the uncertainty surrounding the EU's timeline for implementing its measures remains a point of concern for investors.