Investors are closely watching China’s economic stimulus efforts, as China is a major trading partner of Australia. The Chinese government is expected to introduce additional stimulus measures.

Additionally, investors are anticipating that the U.S. Federal Reserve may cut interest rates several times this year, which would weaken the U.S. dollar and support the Australian dollar.

However, escalating trade tensions between the United States and China, the world's two largest economies, along with rising tariff risks, are fueling concerns over China’s economic recovery.

Source: Fxstreet