AUD/USD kicks off the week on the front foot near 0.6300

• AUD/USD draws support from risk appetite, clings to 0.6300 early Monday.
• Only 20% and not 145% US tariffs on China's semiconductors and electronics provide some relief to markets.
• The focus remains on Chinese trade data and Fedspeak later for fresh trading incentives.

AUD/USD is holding the three-day recovery momentum from five-year lows on Monday at the start of the week, posting small gains near 0.6300.

AUD/USD cheers risk appetite

The latest uptick in the pair is linked to the extension of risk-on sentiment from Friday's American session into early Asian trades this Monday. Markets breath a sigh of relief, digesting the weekend's news of less steep tariffs announced by US President Donald Trump late Sunday on Chinese imports of semiconductors and the electronics supply chain.

Squashing the news of tariffs exemption, Trump clarified that these products will be subject to the existing 20% tariffs on fentanyl and not the 145% levies.

Higher US equity futures reflect the positive risk tone, with the S&P 500 futures gaining nearly 0.80% so far. However, it remains to be seen if the Aussie pair sustains the upswing as the US Dollar could also see a tepid turnaround from three-year lows on improving risk profile.

The US Dollar hit a fresh three-year low against its major currency rivals after the US-China trade war deepened on Friday. China retaliated by raising additional tariffs on US goods to 125% from 84% but mentioned ignoring further US responses.

China's remark also consoles the markets, supporting the risk-sensitive Aussie.

Looking ahead, the pair awaits the Chinese trade data, with key focus on its exports amid the trade war. Although the full impact of US tariffs will not be known but the data could provide some fresh trading incentives in the major.