FX.co ★ Australian Dollar Holds Steady Ahead of Budget

The Australian dollar held steady at $0.628 on Tuesday, maintaining its level as investors awaited the government’s budget announcement, anticipated to disclose a deficit after two successive years of surpluses. Meanwhile, the Reserve Bank of Australia is poised to make a monetary policy decision next week, with expectations of no policy adjustments.The market currently estimates a 66% probability of a further rate reduction in May, following the RBA’s first rate cut in over four years last month. However, the central bank has emphasized that additional easing measures are not assured. On a global scale, market sentiment remained affected by the ambiguity surrounding U.S. trade policy. While there was growing optimism that President Donald Trump might adopt a more selective tariff strategy ahead of the April 2nd deadline, his recent commitment to impose tariffs on automobiles, pharmaceuticals, and other sectors on Monday contributed to the existing uncertainty.