FxWirePro:AUD/USD inches up, but risks still skewed to downside

•  AUD/USD ticked up on Friday  after the U.S. unveiled its latest round of so-called reciprocal tariffs, sparking fresh concerns over global trade tensions.

•The Australian dollar found some support due to its relatively low tariff exposure.

• Australia’s baseline tariff of 10% is currently the lowest among U.S. trade partners, whereas other countries face duties as high as 41%. This discrepancy has helped shield the Australian economy to some extent, even as broader market risks remain.

• On the data front, Australia’s Q2 Producer Price Index (PPI) rose 0.7% quarter-on-quarter and 3.4% year-on-year, slightly below previous readings (+0.9% q/q and +3.7% y/y), suggesting a modest cooling in upstream price pressures.. 

• Looking ahead, U.S. non-farm payrolls data due Friday will be crucial for market direction, with economists expecting an increase of 110K jobs.

•  Immediate resistance is located at 0.6480(July 31st high), any close above will push the pair towards 0.6536(38.2%fib)

•  Support is seen at 0.6418(50%fib) and break below could take the pair towards 0.6397(Lower BB).

 Recommendation: Good to sell  around 0.6450 with stop loss of 0.6550 and target price of 0.6380