Daily digest market movers Australian dollar pressured as US-China trade concerns linger.

The AUD/USD benefited lately from the USD softness which seems to be in a consolidation period.

The Greenback fundamentals remain, with markets pricing a less dovish Federal Reserve (Fed) and strong economic data limiting the USD’s losses.

On the other side, the Aussie could see some gains by the RBA’s hawkishness but Australia’s mixed economic outlook might limit the upside.

The markets are seeing the RBA’s first rate cut to come in Q2 of 2025, while continuing to be confident of a Fed cut in December.

In addition, trade wards fears between the US and China might also affect the Aussie as China is one of its largest trade partners.