Aussie dollar falls below US$0.63 

Daily Currency Update

The Australian dollar is slightly weaker this morning when valued against the Greenback currently trading at US$0.6299 at the time of writing. The Australian dollar (AUD) remained steady after Australian Treasurer Jim Chalmers presented the 2025/26 budget and the Treasury's key economic forecasts before Parliament on Tuesday, including new tax cuts, with two rounds totalling approximately A$17.1 billion. Australia's budget deficit is projected at A$27.6 billion for 2024-25 and A$42.1 billion for 2025-26. Australia's GDP is expected to grow by 2.25% in fiscal year 2026 and 2.5% in fiscal year 2027. The tax cuts are likely aimed at bolstering political support. Recent RBA meeting minutes revealed policymakers debating whether to hold rates steady or opt for a smaller cut, before finally settling on the 25-basis-point reduction. Officials noted this move does not necessarily signal a drawn-out easing cycle, adding that Australia’s peak rate remains relatively low by global standards—largely thanks to a resilient labour market. Looking ahead tomorrow all eyes will be on the Australian Bureau of Statistics which will release the latest Consumer Price Index (CPI). Consumer prices account for most of the overall inflation. Inflation is important to currency valuation because rising prices lead the central bank to raise interest rates out of respect for their inflation containment mandate.