AUD/USD Slides as Trump Speech Triggers Risk-Off, Gold and Oil Volatile

AUD/USD came under significant selling pressure as markets shifted decisively into risk-off mode following a Trump speech that offered no signs of de-escalation on trade tensions, reigniting stagflation fears across global markets. The Australian dollar, a key risk-sensitive currency, weakened against the US dollar as traders fled to safe-haven assets. The S&P 500 and Nasdaq 100 both faced intraday declines, reinforcing the broader risk-averse environment. Gold attracted safe-haven flows, while WTI crude oil saw heightened volatility amid uncertainty over global growth prospects and trade disruption risks. The stagflation narrative — combining slowing economic growth with persistent inflationary pressures from tariffs — remains a dominant theme that could continue to weigh on risk currencies like AUD and NZD while supporting USD and JPY. Traders should watch for further political developments and monitor AUD/USD for potential tests of key support levels. Elevated volatility is expected to persist in the near term as geopolitical uncertainty dominates sentiment.