AUD/USD slides near 0.6200 after US PCE data, tariffs

• The Aussie extends its losing streak by about 0.54%, slipping near 0.6200 and approaching multi-week lows.
• A six-day decline sees the pair break below the 20-day Simple Moving Average, reinforcing short-term seller strength.
• Traders assess fresh tariff escalations, with President Trump threatening an extra 10% levy on Chinese imports.
• PCE data from the US from January met expectations.

The AUD/USD pair posts a fresh three-week low near 0.6200 in Friday's trading session after extending its losing streak for the sixth straight day. The Aussie was already under downward pressure throughout the week but faced an extra blow following United States (US) President Donald Trump's proposal of additional 10% tariffs on China on Thursday. Inflation data from the US also took center stage with the Personal Consumption Expenditures (PCE) data from January meeting expectations as well as Trump's meeting with the Ukrainian president.

Daily digest market movers: Risk aversion grips Aussie amid trade tension and weak domestic indicators

• President Trump's new 10% tariff threat on Chinese goods compounds existing duties, fueling fears of further retaliation. Tariffs for Mexico and Canadian goods are set to take place as soon as next week.
• Australian Private Capital Expenditure data unexpectedly shrank by 0.2% quarter-on-quarter in Q4 2024, missing a 0.8% forecast, highlighting weaker investment activity and undermining confidence in the Australian economy.
• Reserve Bank of Australia (RBA) Deputy Governor Andrew Hauser reiterates optimism for inflation improvements but stresses caution amid persistently tight labor-market conditions and uncertain price trends.
• Across the Pacific, the US Core Personal Consumption Expenditures Price Index, considered the Federal Reserve's (Fed) key inflation measure, rose by 0.3% in January (month-over-month), matching expectations, as Fed policymakers weigh the implications of ongoing trade disputes.
• Ukrainian President Volodymyr Zelenskyy rejected President Trump's "rare earth deal," triggering an irate response from Trump and Vice President JD Vance, according to White House sources.
• The scuttled agreement intended to swap defense guarantees for mineral access was deemed ambiguous and insufficient to deter Russia's invasion. Zelenskyy cited a more favorable proposal from the European Union, further dampening sentiment around the White House.

AUD/USD technical outlook: Sellers push below 20-day SMA as RSI heads toward negative zone

The AUD/USD pair fell by around 0.54% to trade near 0.6200 on Friday, extending a six-day losing streak and losing support from its 20-day Simple Moving Average. The Relative Strength Index (RSI) hovers in the lower part of the scale, suggesting waning bullish momentum, while the Moving Average Convergence Divergence (MACD) histogram shows decreasing green bars, reflecting diminishing upside pressure. Immediate support could emerge around the 0.6150 zone, whereas a bounce would likely face resistance near the 20-day SMA if risk sentiment improves or tariff anxieties recede.