Forexlive European FX news wrap: The AUD rallies on unexpected tax cuts ...Middle East

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Forexlive European FX news wrap: The AUD rallies on unexpected tax cuts
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The big news in the European session was the Australia's center-left government unveiling an unexpected tax cut and an extension of energy rebates in the pre-election budget in what looks like an attempt to shore up political support and help secure Prime Minister Anthony Albanese a second term in office.

The Australian Dollar and Australian Bond Yields got a boost from the news as it could make the RBA's job of bringing inflation sustainably back to target and lower interest rates harder.

    The other noteworthy news was the FT report saying that Trump is considering a two-step tariff regime on April 2 using rarely invoked emergency powers to impose immediate tariffs while conducting formal investigations into trading partners. The market largely ignored this piece of news though.

    Looking ahead, we have the US Consumer Confidence report coming up where better than expected (or not bad as feared) data could further boost the market sentiment.

    This article was written by Giuseppe Dellamotta at www.forexlive.com.

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