Forex Today: Markets remain on edge, await US tariff announcements

Here is what you need to know on Tuesday, April 1:

Markets cling to a cautious stance on the first day of April as they await reciprocal tariff decisions from the US, which are expected to be announced at 19:00 GMT on Wednesday. In the European session, March inflation data from the Euro area will be watched closely and the US economic calendar will feature JOLTS Job Openings data for February and ISM Manufacturing Purchasing Managers Index (PMI) report for March.

The US Dollar (USD) benefited from the risk-averse market atmosphere in the first half of the day on Monday. Following a bearish opening, Wall Street's main indexes staged a rebound later in the American session and limited the USD's gains. US President Donald Trump reiterated late Monday that his reciprocal tariffs plan will target all countries.

During the Asian trading hours, the Reserve Bank of Australia (RBA) announced that it left the policy rate unchanged at 4.1%, as expected. In its policy statement, the RBA noted that the uncertainty about the outlook abroad remains significant. While speaking in the post-meeting press conference, RBA Governor Michele Bullock said policymakers did not discuss a rate cut and explained that they will be waiting for more data before taking the next step. After losing nearly 0.7% on Monday, AUD/USD holds its ground and trades marginally higher on the day at around 0.6250 in the European morning. Meanwhile, the data from China showed that the Caixin Manufacturing PMI improved to 51.2 in March from 50.8 in February.

EUR/USD struggles to gain traction and trades near 1.0800 after posting small losses on Monday.

GBP/USD recovered modestly after dipping below 1.2900 on Monday and ended the day marginally lower. The pair stays relatively quiet and fluctuates in a narrow channel at around 1.2920 to start the European session.

The Unemployment Rate in Japan edged lower to 2.4% in February from 2.5% in January. Other data from Japan showed that the Tankan Large Industry Capex rose by 3.1% in the first quarter. USD/JPY showed no reaction to these data and was last seen moving sideways slightly below 150.00.

Gold set a new all-time high near $3,150 during the Asian session on Tuesday after rising more than 1% on Monday. XAU/USD corrects lower toward $3,130 in the European morning.