With the Australian dollar already among the best-performing G10 currencies this year, the potential for an exemption from U.S. steel and aluminium tariffs could provide additional support. Australia’s deep economic ties with the U.S., particularly in manufacturing and defense, position it favorably for relief from the latest trade measures.

Additionally, strong commodity prices and resilient economic data further bolster the AUD. Meanwhile, the Federal Reserve's cautious stance on rate cuts, combined with potential inflationary pressures from U.S. tariffs, could weigh on the USD. These factors create a supportive environment for a long AUD/USD position, particularly as market sentiment shifts in response to trade policy developments.

LONG AUDUSD

Feb 12 2025