Australian Dollar Rebounds as Global Sentiment Improves

The Australian dollar climbed back above $0.60 on Tuesday after a sharp two-day decline as market sentiment improved after US President Donald Trump signaled a willingness to engage in trade talks with key partners, fueling hopes for a de-escalation in global trade tensions.

US Treasury Secretary Scott Bessent added that nearly 70 countries have contacted the White House seeking tariff negotiations.

However, US-China trade tensions remained elevated after Trump threatened to impose an additional 50% tariff on Chinese imports.

Beijing condemned the move as "blackmail" and vowed to defend its interests.

On the domestic front, recent data showed a decline in both consumer and business sentiment in Australia, reflecting growing concerns over global trade uncertainty.

The soft data supports a dovish outlook for the Reserve Bank of Australia, with markets now pricing in up to 100 basis points of rate cuts this year—with the next reduction seen in May, and further moves in July and August.