Ella 
The Australian dollar (AUD) strengthened against the U.S. dollar (USD) for the fifth consecutive trading day on Tuesday. The AUD/USD pair continues to gain momentum, boosting global risk sentiment as U.S. President Donald Trump excludes key technology products from his new “reciprocal” tariffs.
The exemptions cover most goods produced in China, such as smartphones, computers, semiconductors, solar cells and liquid crystal displays, providing support for the Australian dollar as China remains Australia’s largest trading partner and a major consumer of its goods.
Minutes from the Reserve Bank of Australia’s (RBA) March 31-April 1 meeting indicated that the timing of the next rate hike remained uncertain. While the board noted that the May meeting would be an appropriate time to reassess policy, it stressed that there was no predetermined outcome.
Members acknowledged that global uncertainty, particularly surrounding U.S. tariffs, could weigh significantly on the outlook. The Board also highlighted both upside and downside risks to the Australian economy and inflation.
Australia’s 10-year bond yield fell to around 4.33%. While the Reserve Bank kept interest rates unchanged this month, it struck a more dovish tone about future rate cuts, noting that core inflation was easing. Markets are currently pricing in a 25 basis point rate cut in May and expect a total easing of around 120 basis points for the full year.
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