The Australian dollar has surged to a nine-month high against the US dollar, trading at 65.82 US cents this morning. The rise is attributed to improved global risk appetite, with U.S. equity indexes nearing record highs.
So far in 2025, the Aussie has strengthened by 4 US cents against the greenback, signaling a recovery after investor pullback in April following tariff threats from U.S. President Donald Trump. At the time, tens of billions were withdrawn from markets due to wide-ranging tariff announcements.
Trump’s latest warning of a 35% tariff on Canadian imports — and potential increases for Australia — has further rattled markets. However, the Australian dollar remains resilient and is now on course to test the September 2024 high of 69.42 US cents, if it surpasses July’s peak.
The rally comes despite the Reserve Bank of Australia holding interest rates steady at 3.85%, defying expectations of a cut from both economists and mortgage holders under financial pressure.
