The Australian dollar weakened to below $0.658 on Friday, ending its three consecutive session of gains, as investor sentiment turned cautious following a fresh wave of global trade tensions sparked by US President Donald Trump. On Thursday, Trump announced a 35% tariff on Canadian imports starting August 1, citing Ottawa’s retaliatory tariffs. He also signaled plans to impose blanket tariffs of 15% to 20% on most other trade partners - a further blow to Australia, which relies heavily on free trade for its commodity exports and is currently subject to a 10% levy. On the policy front, the Aussie had been supported by the Reserve Bank of Australia’s surprise decision to maintain rates at 3.85%. However, rate cut expectations for August are firming, with markets now pricing in an 89% chance, though much hinges on Q2 inflation data due July 30. A 0.6%–0.7% rise in core inflation would likely clear the way for a cut, while a stronger reading could delay easing.