The AUD/USD would normally be heavily focused on the RBA minutes, but given the news of the day, it appears that might need to take a back seat.

The tariffs that the US President announced today, have put the markets into risk-off mode. And the AUD/USD was feeling the heat. While price fell early it has retraced most of the losses, we might have more weakness ahead when Europe opens.

It’s fair to say the turnaround has been bigger than anticipated.

The RBA minutes contained few surprises. A few of the main points:

• Rate increases are more likely than decreases
• No strong case for a hike
• Gradual improvement in inflation and employment
• Downplaying risk of mortgage rate increases
• Trade tensions pose a material risk

Aussie Outlook

The AUD/USD is still focused on the major level of 0.7100 and resistance at 0.7200.

Price has basically been hovering around the midpoint for some time now. The channel and downtrend are clearly intact and I am still bearish for the time being.

The USD is really calling the shots so we need to keep focused on it more so than the AUD at the moment.