Action Insight Mid-Day Report 1-6-25

Dollar Falls as Trump Considers Sector-Specific Tariffs Over Blanket Approach

Dollar weakened significantly, while stock futures rebounded, amid reports suggesting that the incoming Trump administration may scale back its plans for sweeping tariffs. According to The Washington Post, discussions among President-elect Donald Trump’s aides now lean toward imposing tariffs only on critical sectors tied to national or economic security, rather than blanket levies on all imports.

This approach marks a departure from the broader tariff policy championed during the campaign, reflecting political considerations around goods integral to daily life—such as food and consumer electronics—that could spark backlash if subject to hefty duties. In this scenario, the administration aims focus on reshuffling supply chains in areas like defense, medical equipment, and energy production back to US soil.

While the specifics are still under discussion, the move signals a more calculated approach to trade policy that could reduce market fears of widespread disruptions in global trade.....

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AUD/USD Mid-Day Report

Daily Pivots: (S1) 0.6196; (P) 0.6210; (R1) 0.6232; More...

AUD/USD's extended rebound and break of 0.6273 resistance suggests short term bottoming at 0.6178, on bullish convergence condition in 4H MACD, and just ahead of 0.6169 key support. Intraday bias is back on the upside for 55 D EMA (now at 0.6245). But near term outlook will stay bearish as long as 38.2% retracement of 0.6941 to 0.6178 at 0.6469. For now, more consolidation is in favor in the near term as long as 0.6178 holds, in case of retreat.

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