# US dollar edges lower as China tariffs kick in

> The US dollar eased after China tariffs took effect, which lifted the Australian dollar to $0.626 from a low of $0.6085 earlier in the week. The Australian dollar is often used as a liquid proxy for the yuan because of Australia's exposure to China.

- Date: 2025-02-04 · published 2025-02-04T12:00:00.000Z
- Category: trade · region China · magnitude medium
- Page: https://feedsoft.ai/events/26336-us-dollar-edges-lower-as-china-tariffs-kick-in
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md), [Australian Dollar (USD per AUD)](https://feedsoft.ai/c/AUDUSD.md), [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md)

## Why it matters

Tariffs on China raise uncertainty over Chinese import demand for US and Australian feed grains and meal. A weaker dollar can, however, support dollar-priced commodities, so the net price effect on feed inputs is mixed.

## Read by commodity

- DXY: bearish ▼
- AUDUSD: bullish ▲
- USDCNY: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2025-02-02 | [Dollar lower after U.S. tariffs on Mexico paused for a month](https://feedsoft.ai/events/26268-dollar-lower-after-u-s-tariffs-on-mexico-paused-for-a-month.md) | -0.0% | -0.6% |
| DXY | 2019-05-31 | [Forex Market: US tariffs on Mexico, US-China trade war in focus](https://feedsoft.ai/events/59301-forex-market-us-tariffs-on-mexico-us-china-trade-war-in-focus.md) | -0.4% | -1.5% |
| DXY | 2025-01-20 | [Dollar tumbles as Trump team signals no immediate tariffs](https://feedsoft.ai/events/12672-dollar-tumbles-as-trump-team-signals-no-immediate-tariffs.md) | -1.1% | -1.7% |
| DXY | 2019-08-01 | [Dollar falls against yen after Trump whacks China with more tariffs \| Reuters](https://feedsoft.ai/events/57813-dollar-falls-against-yen-after-trump-whacks-china-with-more-tariffs-reuters.md) | +1.1% | +2.1% |
| DXY | 2025-05-12 | [Oil Prices Jump on US-China Tariff Reduction](https://feedsoft.ai/events/12549-oil-prices-jump-on-us-china-tariff-reduction.md) | +0.5% | -1.3% |
| USDCNY | 2019-05-06 | [Chinese yuan tumbles as Donald Trump threatens trade tariffs](https://feedsoft.ai/events/10428-chinese-yuan-tumbles-as-donald-trump-threatens-trade-tariffs.md) | +1.3% | +2.5% |
| USDCNY | 2019-05-13 | [Forex Market: Yuan weakest since December as China adds tariffs](https://feedsoft.ai/events/8441-forex-market-yuan-weakest-since-december-as-china-adds-tariffs.md) | +1.4% | +1.6% |
| USDCNY | 2024-11-26 | [Dollar jumps, stocks retreat after Trump vows tariffs](https://feedsoft.ai/events/27637-dollar-jumps-stocks-retreat-after-trump-vows-tariffs.md) | +0.6% | +0.8% |

## Sources

- reuters.com: https://www.reuters.com/markets/currencies/canadian-dollar-mexican-peso-steady-after-sharp-rebound-tariff-reprieves-2025-02-04/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.