AUD/USD gains to near 0.6300 amid weakness in US Dollar

• AUD/USD rises to near 0.6300 as the US Dollar slides due to uncertain US economic outlook.
• Australia's Westpac Consumer Confidence increases significantly to 4% in March.
• Investors await the US inflation data, which will influence expectations for the Fed's monetary policy outlook.

The AUD/USD pair moves higher to near the key level of 0.6300 in Tuesday's North American session. The Aussie pair gains as the US Dollar (USD) faces significant selling pressures amid fears that the tariff agenda of United States (US) President Donald Trump will lead to economic turbulence in the near term.

The US Dollar Index (DXY), which tracks the Greenback's value against six major currencies, posts a fresh four-month low near 103.50.

Investors expect Trump tariffs to accelerate price pressures as their impact will be borne by US importers. Such a scenario will diminish the purchasing power of households who have been already battling to high inflationary pressures.

To get cues about the current status of US inflation, investors will focus on the Consumer Price Index (CPI) data for February, which will be published on Wednesday. The US inflation report is expected to show that the headline CPI decelerated to 2.9% from 3% in January. In the same period, the core CPI - which excludes volatile food and energy prices - is estimated to have grown at a slower pace of 3.2% compared to 3.3% seen earlier.

In the Aussie region, Westpac Consumer Confidence has increased significantly to 4% in March from 0.1% in February, the highest level in four months. Consumer Confidence has increased due to the Reserve Bank of Australia's (RBA) interest rate cut decision on February 18. The RBA reduced its Official Cash Rate (OCR) by 25 basis points (bps) to 4.1% but guided a cautious outlook as the battle against inflation is not over yet.