The Australian Dollar experienced a delayed yet positive reaction to China's stronger-than-expected fourth-quarter GDP alongside December's Retail Sales and Industrial Production data. As of early Friday, the AUD/USD pair remains better bid above 0.6200, marginally higher compared to the previous day. This upward movement is primarily attributed to China's steady economic operations throughout 2024, as reported by the National Bureau of Statistics (NBS) during a press conference.
China's robust economic performance has provided a supportive backdrop for the Australian Dollar, which showed remarkable strength against the Japanese Yen. Despite this, some factors might cap the currency pair's upside potential. The Reserve Bank of Australia's (RBA) dovish shift and looming tariff plans proposed by former U.S. President Donald Trump are expected to exert pressure on further gains.
Market analysts anticipate a mild rebound in consumer prices for 2025, with expectations that January consumer price rises will accelerate. This outlook further bolsters the Australian Dollar's position in the foreign exchange market.
However, the currency's journey is not without challenges. The RBA's recent policy stance could limit the upward trajectory of the AUD/USD pair, as it signals a cautious approach to monetary policy adjustments. Additionally, Trump's tariff plans continue to be a concern, potentially influencing trade dynamics between Australia and its key partners.
In terms of current performance, the Australian Dollar has maintained its defense above the 0.6200 level against the U.S. Dollar. The table below illustrates today's percentage change of the Australian Dollar against major currencies, with AUD as the base and USD as the quote.
| Currency Pair | Percentage Change |
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