While the AUD/USD pair has recovered some losses, the Australian dollar remains vulnerable due to persistent cross weakness amid ongoing US-China trade tensions. Analysts predict that the Reserve Bank of Australia may announce a cut in May, highlighting the bearish outlook for AUD, which is continuing to act as a proxy for China’s economic conditions. Traders should prepare for potential downside risks as the situation evolves, staying vigilant for indicators that could trigger further volatility in the currency pair.