The Australian Dollar (AUD) strengthened for the fifth straight session against the US Dollar (USD) on Tuesday (15/4). The AUD/USD pair continued to gain momentum after US President Donald Trump exempted key technology products from his new "reciprocal" tariffs, boosting global risk sentiment.
The exemptions covered goods largely manufactured in China—such as smartphones, computers, semiconductors, solar cells, and flat-panel displays—which provided a boost to the AUD, as China remains Australia's largest trading partner and a major consumer of its commodities.
The minutes from the Reserve Bank of Australia's (RBA) March 31–April 1 meeting showed that the timing of the next interest rate move remains uncertain. While the Board noted that the May meeting would be an appropriate time to reassess policy, it stressed that no decision was predetermined.
Members acknowledged that global uncertainties, particularly around US tariffs, could significantly impact the outlook. The Board also highlighted both upside and downside risks to the Australian economy and inflation.
The 10-year Australian government bond yield has fallen to around 4.33%. While the Reserve Bank of Australia (RBA) kept interest rates unchanged this month, it has been more dovish on future rate cuts, suggesting core inflation is easing. Markets are currently pricing in a 25 basis point rate cut in May and are anticipating around 120 basis points of total easing for the year. (Newsmaker23)
Source: FXstreet
