The Australian dollar continues to struggle in its attempts at recovery amid uncertainty caused by the U.S. President Donald Trump's threat to impose a 200% tariff on Chinese goods if Beijing refuses to supply magnets to the U.S. According to Reuters, any changes in China's economic situation could significantly affect the Australian dollar, given the close trade ties between China and Australia.

In addition, the Australian dollar is facing further pressure after the minutes of the Reserve Bank of Australia's (RBA) August meeting revealed that board members see a likely need for further interest rate cuts next year. The minutes emphasized that the pace of rate reductions will depend on incoming economic data and global risks. The RBA board discussed both gradual and more aggressive easing, taking into account labor market conditions, inflation levels that remain above average, and signs of recovering domestic demand.

On the other side of the pair, the U.S. dollar is facing headwinds due to growing concerns about the independence of the Federal Reserve. This comes after today's announcement by Trump, who stated on social media that Lisa Cook was being removed from her position. Cook's removal opens the door for Trump to appoint a new board member, potentially increasing his influence over Fed policy, according to Reuters.

From a technical standpoint, AUD/USD is trading above the nine-day exponential moving average (EMA), which signals strengthening short-term bullish momentum. A successful break above the round level of 0.6500 would confirm bullish sentiment and open the way toward the monthly high of 0.6570, reached on August 14, followed by the nine-month high of 0.6625, recorded on July 24.

On the other hand, immediate support lies at the nine-day EMA around 0.6477. A break below this level would weaken short-term momentum, putting pressure toward the two-month low of 0.6414, reached on August 21. Further declines would find support near the three-month low of 0.6372, registered on June 23. Oscillators on the daily chart remain in negative territory, adding to the bearish risk.