Concerns over rising tariffs between the U.S. and China have begun to ease, as the U.S. appears likely to resume negotiations with China. The high tariffs had been expected to negatively impact global economic growth.

President Trump's recent decision to impose import tariffs ranging from 10% to 50% on a wide range of products  including some Chinese goods facing tariffs as high as 145% has raised the risk of Australia being targeted with tariffs from both China and the U.S.

The U.S. Federal Reserve kept interest rates unchanged at its latest meeting. Fed Chair Jerome Powell stated that inflationary pressures remain the central concern, despite high tariffs potentially triggering stagflation, a combination of economic recession and high inflation. Meanwhile, the Reserve Bank of Australia (RBA) also left its interest rate unchanged at its latest meeting. Governor Michele Bullock cited inflation and a tight labor market as reasons for postponing any rate cuts.

Source: Fxstreet