The tension in trade between China and the United States is easing, and traders are reducing their bets on a rate cut by the Australian Reserve Bank.

date
13/05/2025
According to the Wise Finance APP, due to the easing of tensions in the US-China trade situation, traders are withdrawing their bets on the Reserve Bank of Australia implementing aggressive monetary easing policies. Current pricing in the currency market suggests that the Reserve Bank of Australia will only cut interest rates three times for the remainder of the year. Just four weeks ago, when US President Trump imposed so-called "equivalent tariffs" on trading partners, casting a shadow over global economic growth prospects, the currency market expected the Reserve Bank of Australia to cut interest rates at least five times for the remainder of the year, with a high possibility of a sixth rate cut.