AUD/USD slumps to near 0.6280 on US Dollar's strong recovery

• AUD/USD tumbles to near 0.6280 as the US Dollar outperforms on Trump's tariff agenda.
• Trump's America First policy has prompted global economic risks.
• Soft US CPI and PPI data for February failed to weigh on the US Dollar.

The AUD/USD pair falls sharply to near 0.6280 in North American trading hours on Thursday. The Aussie pair faces a sharp selling pressure as the US Dollar (USD) outperforms amid cautious market mood. Financial market participants have turned to safe-haven bets amid fears that United States (US) President Donald Trump's "America First" policies will result in a global economic slowdown.

The US Dollar Index (DXY), which tracks the Greenback's value against six major currencies, jumps to near 104.00, after bouncing back from the four-month low of 103.20 posted on Tuesday.

US President Trump reiterates tariff threats from his post on Truth.Social, "The US doesn't have Free Trade. We have "Stupid Trade." The Entire World is ripping us off."

On Wednesday, Trump also confirmed retaliatory tariffs on Eurozone on their counter-tariffs on 26 billion Euros (EUR) worth of goods against 25% universal import duty by the US on steel and aluminum.

Meanwhile, investors ignore soft US Consumer Price Index (CPI) and Producer Price Index (PPI) data for February amid the storm of Trump's tariff agenda. The US headline and core PPI rose at a slower-than-expected pace of 3.2% and 3.4%, respectively, in 12 months to February. Month-on-month headline PPI remained flat while the core figure deflated by 0.1%. Soft US inflation data boosts Federal Reserve (Fed) dovish bets.

On the Aussie front, dismal market sentiment has dampened the Australian Dollar's (AUD) appeal. The outlook of the Aussie Dollar is also uncertain as the US has imposed 20% tariffs on China. The AUD acts as a mirror of Chinese economic growth, given Australia's strong reliance on exports to China.