The AUD/USD pair soars to near 0.6260 in Monday’s North American session. The Aussie pair rallies as the US Dollar (USD) plunges on a thin-trading volume day, with (US) markets remaining closed on account of Martin Luther King’s Birthday.The US (DXY), which tracks the Greenback’s value against six major currencies, dives to near 108.30 as reports from the Wall Street Journal (WSJ) shows President-elect Donald Trump is planning to issue a broad memorandum that directs federal agencies to study trade policies and evaluate US trade relationships with China and America’s continental neighbors—but stops short of imposing new tariffs on the first day of his office.The Greenback faces pressure as its safe-haven demand diminishes, given that market participants were anticipating that Trump would impose higher tariffs soon after returning to the White House.Earlier, a report from Fox Digital showed that Trump would sign over 200 orders in his first day of office that might include policies such as immigration controls, lower tax cuts, and higher tariffs. Market experts believe that Trump’s economic policies would be pro-growth and inflationary for the US.Still, the event will force the (Fed) to keep interest rates at their current levels for longer.Currently, traders are pricing in more than one interest rate cut from the Fed this year, seeing the first in June, according to the CME FedWatch tool.Meanwhile, the Australian Dollar (AUD) exhibits a mixed performance after the People’s Bank of China (PBoC) monetary policy decision. The PBoC kept its one-year Loan Prime Rate (LPR) unchanged at 3.10%, while the five-year LPR remains at 3.60%.Since China and Australia are close trading partners, any shifts in China’s economy could have an impact on Australian markets.
