AUD/USD falls to near 0.6150 after Trump sets tariffs

• AUD/USD weakens to around 0.6155 in Monday's early Asian session, down 0.95% on the day. 
• The White House planned 25% tariffs on Mexico, Canada; 10% on China from Tuesday. 
• The rising expectation of RBA rate cuts weighs on the Aussie. 

 
The AUD/USD pair attracts some sellers to near 0.6155 during the early Asian session on Monday. The weakening of the Australian Dollar (AUD) is pressured by US President Donald Trump's threat to hit China, Canada, and Mexico with tariffs. Later on Monday, China's Caixin Manufacturing Purchasing Managers Index (PMI) for January will be released. 

On Saturday, the White House said that it will impose tariffs of 25% on goods coming from Canada and Mexico while hitting China with a 10% levy, starting Tuesday, per Bloomberg. Canada, Mexico and China vowed to respond to sweeping new tariffs on their exports to the US. China's foreign ministry noted tariffs will inevitably affect future cooperation on drug control. Trump tariff threats exert some selling pressure on China-proxy Aussie as China is a major trading partner of Australia. 

Furthermore, rising bets that the Reserve Bank of Australia (RBA) will cut the interest rate might contribute to the AUD's downside. According to the Bloomberg survey on Friday, Twenty of 23 respondents expect the RBA will lower its cash rate to 4.10% on February 18. Financial markets are now pricing in nearly 90% odds of a reduction.

Traders brace for the release of China's January Caixin Manufacturing PMI, which is due later on Monday. If the report shows a stronger-than-expected outcome, this could help limit the AUD's losses.