Australian Dollar eyes further upside amid softer US Dollar and tariff caution

• AUD/USD moves near the 0.6300 zone on Thursday, showing mild gains in a choppy session.
• Despite Trump's auto tariffs, the Greenback weakens as traders await key US inflation data.
• Short-term indicators lean bullish, but longer-term moving averages still cap upward potential.

The Australian Dollar (AUD) trades steady around the region 0.6300 against the US Dollar (USD) during Thursday's American session. The pair consolidates recent gains despite renewed weakness in the US Dollar, which faces selling pressure after tariff-related developments and market caution ahead of Friday's PCE inflation release. The AUD/USD pair trades within a tight range, reflecting market indecision but holding ground as optimism over China's stimulus pledges provides underlying support.

Daily digest market movers: Australian Dollar holds steady as tariff tension weighs on USD

• The Australian Dollar remained resilient on Thursday, trading near key levels amid market consolidation and a softening Greenback.
• The US Dollar Index fell back from multi-week highs, pressured by renewed trade concerns and uncertainty surrounding upcoming economic data.
• Investors await the US core Personal Consumption Expenditures Price Index, expected to shed light on inflation trends and Fed policy outlook.
• Trump's move to impose 25% tariffs on auto imports adds another layer of uncertainty, with reciprocal actions likely to follow on April 2.
• The Fed maintains a cautious tone. President Kashkari reiterated a wait-and-see approach as policy clarity remains elusive under new trade policies.
• Risk appetite remains fragile, with traders weighing the inflationary risk of tariffs against signs of slower US economic momentum.
• China's Vice Premier promised aggressive macroeconomic support to stimulate domestic demand and stabilize foreign trade and investment.
• This commitment boosted sentiment for the Aussie, which is closely linked to China's demand for raw materials and industrial goods.
• The Reserve Bank of Australia continues to lean cautiously dovish, awaiting more clarity on inflation before deciding on further easing.
• Speculators remain bearish on the Aussie, with net short positions hovering near multi-week highs, driven by persistent trade-related concerns.

Technical analysis

During Thursday's American session, the AUD/USD pair hovered near the 0.6300 region, posting a modest uptick and staying within a tight range. The Relative Strength Index (RSI) climbed to 50, signaling neutral-to-bullish momentum, while the Moving Average Convergence Divergence (MACD) remains in red territory, reflecting lingering selling interest. Although mixed, technical signals tilt slightly in favor of the bulls. The 10-day and 30-day Exponential Moving Averages provide short-term support, both holding above the 0.6300 mark. Conversely, longer-term indicators, such as the 100-day and 200-day SMAs, still suggest bearish conditions. The pair's current range sits between 0.6278 and 0.6318, with immediate support located at 0.6309 and resistance building near 0.6319 and the 0.6331 zone. A breakout above 0.6400 could spark further gains toward December's highs.