Overview
The Commonwealth Bank has warned that the Australian dollar is at risk of a violent reversal if US President Donald Trump follows through with his punitive tariffs on major trading partners.
The local currency sank 1 per cent to as low as US64.86¢ on Monday night as traders reacted to Trump’s threat to slap an additional 10 per cent tariff on any country aligning themselves with “the anti-American policies” of BRICS – a group of nations that includes Brazil, China, South Africa and India.
However, the Aussie shot up 1 per cent on Tuesday after the Reserve Bank stunned markets and economists by keeping the cash rate on hold at 3.85 per cent. The currency was last trading 0.7 per cent higher at US65.39¢.