Australian Dollar trades lower above 0.6200 as Trump imposes additional tariffs on China

• The Aussie pair sees mild losses on Tuesday, trading in the 0.6200 zone during the American session.
• Selling pressure looms as President Trump announces an extra 10% tariff on China, compounding February's similar levy.
• The pair records a fresh losing streak amid a negative outlook despite the US Dollar's current weakness failing to lift the Aussie.

The AUD/USD pair is down around 0.1% near 0.6220 on Tuesday. This comes even as the US Dollar extends its downside, revisiting multi-week lows near 106.15 on the US Dollar Index (DXY).

President Donald Trump's newly added 10% tariff on China clouds the Aussie's prospects despite an anticipated rise in Australian Retail Sales data. Meanwhile, investors' dovish Federal Reserve (Fed) bets, spurred by a decline in United States Personal Spending, fail to provide the Aussie with a solid footing.

Daily digest market movers: Tariffs weigh on the Aussie as traders eye Fed dovish stance

• President Trump's decision to impose an additional 10% tariff on China intensifies concerns over global growth, especially as China is Australia's leading export market. The extra levies follow the 10% duty introduced in February, heightening fear that Beijing may retaliate.
• Trump also threatening North American partners contributes to a cautious risk backdrop. Concerns linger that further US tariffs or retaliation from China could undermine global demand and put pressure on export-driven currencies like the AUD.
• Australian Retail Sales are expected to show a moderate increase, offering some cushion for the Aussie.
• Nonetheless, the Australian Dollar's upside remains capped by slow growth prospects and uncertainty surrounding the next RBA move.
• Mounting market bets on a June Fed rate cut reflect a softer US Personal Spending figure, which stokes recession worries. The US Dollar, however, has seen renewed downside despite risk aversion, leaving the Aussie unable to capitalize on the Greenback's overall fragility.

Technical analysis: Pair's decline stalls, negative outlook stays

The AUD/USD pair declined by about 0.38% to a lower region around 0.6200 during Tuesday's American session with selling pressure abating only slightly once the US Dollar lost steam. Notably, the pair has suffered a new losing streak, keeping the outlook negative from last week.

The Relative Strength Index (RSI) currently lies in a lower band, declining near the 30s, an indication of ongoing bearish momentum. The Moving Average Convergence Divergence (MACD) prints flat red bars, suggesting sellers remain dominant for now.

Having slipped under its 20-day Simple Moving Average (SMA), the Aussie remains vulnerable unless it reclaims that threshold. Immediate support stands near 0.6150, whereas any rebound would likely face resistance near the recent swing high within 0.6250-0.6270.