The Australian dollar slipped to around $0.65 on Tuesday, breaking a two-day winning streak despite optimism over a breakthrough in the US-Australia trade agreement. The two countries recently signed a critical minerals partnership, with US President Donald Trump and Australian Prime Minister Anthony Albanese positioning the deal as a key step toward reducing American dependence on China. This follows Beijing’s move to tighten export controls on its own critical mineral supplies. Albanese said the agreement takes the US-Australia alliance “to the next level,” noting that while collaboration has been underway since Trump’s first term, this latest deal represents a major step forward in strengthening ties. The funding will support a portfolio of "ready-to-go" projects valued at $8.5 billion (A$13 billion), aimed at expanding Australia’s mining and processing capabilities. Domestically, investors now await flash PMI data, alongside speeches from RBA officials later this week.