The Australian dollar edged higher to around $0.656 on Wednesday, marking its fourth straight session of gains, supported by improved market sentiment amid fresh global trade developments. This followed Tuesday’s announcement by US President Donald Trump of a major tariff deal with Japan, including a 15% levy on Japanese exports, while US–China trade talks are also gaining momentum ahead of the August 12 deadline. Treasury Secretary Scott Bessent is set to meet Chinese officials next week in Stockholm to seek a deadline extension and promote US exports. Domestically, latest data showed the Westpac Leading Index slowed to 0.03% in June, reflecting weaker momentum due to softer commodity prices and reduced work hours. Markets also weighed the Reserve Bank’s cautious stance, with meeting minutes showing members favor a gradual easing path and prefer to await clearer signs of slowing inflation. Focus now shifts to PMI data due later today for insight into July’s business conditions.