Ella 
The Australian dollar (AUD) continued to rise against the U.S. dollar (USD) on Monday, supported by improving risk sentiment. The AUD/USD pair gained after U.S. President Donald Trump announced on Sunday that he would impose lighter tariffs on Chinese imports, including semiconductors and electronics. Trump clarified earlier speculation about the exemptions, confirming that those goods would continue to be subject to existing 20% tariffs related to fentanyl, rather than the previously suggested 145% tariffs.
Stronger commodity prices provided further support to the AUD. However, ongoing trade tensions between the United States and China continue to weigh on the outlook, particularly given Australia’s high dependence on Chinese demand and exports.
China’s trade balance in March recorded a sharp increase in RMB (CNY) terms, reaching 736.72 billion yuan, up sharply from 122 billion yuan in the previous month. In U.S. dollar (USD) terms, the trade surplus also exceeded expectations, reaching $102.66 billion, well above the forecast of $77.0 billion but down from the previous $170.51 billion.
China’s General Administration of Customs acknowledged the challenges facing the country’s exports, calling the current external environment “complex and severe.” Despite this, officials expressed confidence, saying “the sky is not falling.” They reported that the year had started well, with foreign trade showing growth both in quantity and quality. The agency also stressed that China will take all necessary measures to counter the US actions and safeguard national sovereignty and security.
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