Australia intends to reduce trade dependence on US because of Trump's policies — The Guardian

The Guardian reports that a new trading strategy is gaining popularity as market participants retreat from American assets. According to Peter Dragicevich of Corpay, inconsistent US trade policies are eroding investor confidence and increasing economic uncertainty, driving traders to look for alternative investment options.

Under such circumstances, capital is gradually shifting toward more stable economies, including Australia. The Australian dollar could strengthen against the US dollar as the investment appeal of the US economy weakens.

Rising capital inflows present Australia with new opportunities for the country's GDP growth. Mathew Cherian, an expert of the Australian company MasterCare, stresses the need to reduce the country’s dependence on American imports. Developing domestic technologies and diversifying supply chains could play a key role in economic growth. The limited impact of US import tariffs may help Australia to remain sustainable even with a possible recession in the US.