China’s Ministry of Commerce has temporarily lifted its export ban on “dual-use items” like gallium, germanium, antimony, and super-hard materials for the United States. This ban is suspended from Sunday until November 27, 2026. This decision follows China’s recent removal of some export controls on rare earth metals and materials used in lithium batteries. Meanwhile, the AUD/USD pair slightly increased by 0.05%, now trading at 0.6501.

The Australian Dollar

The Australian Dollar (AUD) is affected by several factors, including the interest rates set by the Reserve Bank of Australia (RBA). Australia’s exports, especially iron ore, and the health of the Chinese economy significantly influence the AUD. The RBA aims to keep inflation stable by adjusting interest rates, which affects the AUD’s value. Higher interest rates can strengthen the AUD, while lower rates can weaken it. China is Australia’s largest trading partner, which impacts the value of the Australian Dollar based on its economic performance. When China’s economy grows, demand for the AUD usually increases. Iron ore, Australia’s main export, also plays a key role in determining the AUD’s value. When iron ore prices rise, so does the AUD. Additionally, Australia’s trade balance affects its currency: a positive trade balance strengthens the AUD, while a negative balance weakens it.

China’s Temporary Lift on Export Bans

On November 10, 2025, China’s decision to temporarily lift export bans on key materials is a positive development for global trade. This easing of restrictions can improve market confidence, which tends to favor currencies like the Australian Dollar. We can see this in the AUD/USD pair, currently at 0.6501. The condition of China’s economy is crucial, and recent data looks promising. Their Q3 GDP growth for 2025 was 4.8%, surpassing expectations, and the October manufacturing PMI stood steady at 50.6, indicating growth. This stability in our primary trading partner boosts demand for Australian exports and supports the AUD. Iron ore prices have also been strong, staying around $135 a tonne, significantly higher than the lows in 2024. This strength positively impacts our national income and helps maintain a robust currency. Domestically, the RBA’s actions are important. Last week, the RBA held the cash rate at 4.35% due to ongoing concerns about services inflation. This is in contrast to the US Federal Reserve’s rate of 5.25%, meaning the interest rate gap may limit the AUD’s appreciation against the US dollar. Australia’s trade balance continues to support the currency. The latest report for September 2025 showed another strong surplus of over A$11 billion, driven by commodity exports. The steady demand from international buyers of our goods provides a solid foundation for the AUD. Given these factors, the positive sentiment from China may help push the AUD/USD higher in the upcoming weeks. Traders could consider strategies that benefit from a potential climb to resistance near 0.6650. However, the ongoing interest rate gap with the United States might restrict the AUD’s ability to break out sustainably. Create your live VT Markets account and start trading now.

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