Australian dollar hits six-month high as greenback slides on EU tariffs threat
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The news: The Australian dollar is climbing against the US dollar, and shares in local gold miners are on the rise, after US President Donald Trump threatened the imposition of 50% tariffs on the European Union.
The numbers: The Aussie hit a six-month peak of 65.36 US cents at 12:10pm AEST, after climbing against the greenback since Trump on Friday threatened to impose 50% tariffs on imports from the EU from 1 June.
However, the gains reversed slightly after Trump said he would delay the tariffs until 9 July, putting the Australian dollar’s gains at 0.48% to 65.25 US cents at 12:54pm AEST. Over the last five days, the Aussie was up 1.06% against the greenback.
ASX-listed gold miners are also benefiting from the US dollar's decline as demand for the safe-haven asset has climbed. The spot price was down 0.07% at USD3,355.16 in the early afternoon but up 1.8% on the last close price prior to the tariff threat.
Westgold Resources (+3.85%) and Bellevue Gold (+3.57%) were among the top 10 biggest gainers on the ASX 200 at 12:02pm AEST.
The context: Trump announced today he would delay the EU tariffs after talks with European Commission President Ursula von der Leyen. He said von der Leyen had told him "we will rapidly get together and see if we can work something out".
The sources: Tradingview, ASX
