AUD/USD moves below 0.6400 ahead of China's trade balance data

• AUD/USD continues to face downward pressure amid stalled US-China trade negotiations.
• Beijing is unlikely to ease tariffs ahead of the upcoming talks in Switzerland, fueling market uncertainty and weakening risk sentiment.
• President Trump has announced a "major" trade deal with the United Kingdom, although key tariffs will stay at 10%.

The AUD/USD pair continues its losing streak for the third consecutive session, trading near 0.6390 during Friday's Asian session. The Australian Dollar (AUD) remains under pressure due to stalled progress in US-China trade negotiations. Given the close economic ties between Australia and China, any pressure on the Chinese economy tends to weigh on the AUD.

According to the Global Times--citing the Chinese Embassy in the United States--Beijing is unlikely to reduce tariffs ahead of the upcoming talks in Switzerland. This adds to market uncertainty and dampens risk sentiment.

In the United States (US), President Donald Trump has adopted a firm stance on China trade policy, following the appointment of a new envoy to Beijing. While there are discussions around tariff exemptions, the administration appears cautious, with Trump stating that they are "not looking for so many exemptions."

Meanwhile, China is reportedly considering a significant change to its real estate market--banning the pre-sale of homes and allowing only completed properties to be sold. This move, aimed at stabilizing the property sector, is part of a broader reform plan still under development. The regulation would apply to future land sales, excluding public housing, and local governments would have flexibility in implementation.

The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against a basket of currencies, is trading around 100.60, buoyed by strong US economic data and expectations of prolonged yield differentials. Initial optimism surrounding a US-UK trade agreement has faded, however, as it became clear that existing 10% tariffs will remain in place.