FX.co ★ Aussie Hovers Near 4-Week Low Ahead of RBA Decision

The Australian dollar hovered around $0.625 on Tuesday, maintaining close proximity to a four-week low as investors strategized ahead of the Reserve Bank of Australia's upcoming monetary policy announcement. Market consensus anticipates that the central bank will hold its policy rate steady at 4.1% while evaluating the possible effects of U.S. tariffs on Australia’s economy. After implementing its first rate cut in over four years this February, the RBA has adopted a cautious stance regarding further easing measures, with officials playing down the likelihood of multiple rate reductions. On the economic data front, retail sales in Australia showed a smaller-than-expected increase in February, signaling a decline in domestic spending. Concurrently, the Australian dollar dropped nearly 1% on Monday amid concerns over the impending implementation of reciprocal tariffs by U.S. President Donald Trump, which exert pressure on the currency tied to exports. On Sunday, Trump reiterated his commitment to enforcing reciprocal tariffs on all trading partners and reportedly pressed his advisers for a bolder trade policy approach.