AUD/USD trades flat around 0.6250 after RBA's monetary policy decision

• AUD/USD consolidates around 0.6250 after the RBA left interest rates unchanged at 4.1%, as expected.
• The RBA lacks confidence whether inflation is on track towards their 2%-3% range.
• Reciprocal tariffs by US President Trump are expected to weigh on China's economic outlook.

The AUD/USD pair turns sideways around 0.6250 in Tuesday's European session. The Aussie pair flattens after the Reserve Bank of Australia (RBA)'s monetary policy meeting in which it left the key Official Cash Rate (OCR) unchanged at 4.1%, as expected, and didn't provide meaningful guidance on the interest rate outlook.

RBA Governor Michele Bullock said during the press conference that the board did not discuss a rate cut and did not make up its mind on a May move as they are still not 100% confident that inflation is moving towards their 2%-3% range.

Going forward, the major threat for the Australian Dollar (AUD) is the release of a detailed reciprocal tariff plan by United States (US) President Donald Trump, which he will unveil on Wednesday. Investors expect Trump to announce the highest tariff measures on China for having the largest trade surplus against the US among all its trading allies.

Such a scenario will make Chinese products less competitive in the global market. This will also have a significant impact on the Aussie Dollar, given that the Australian economy relies heavily on its exports to China.

Meanwhile, the US Dollar (USD) trades sideways as investors have been sidelined, waiting for the release of the Trump's reciprocal tariffs. According to the Washington Post, the White House aides have drafted a proposal to impose tariffs of around 20% on most imports to the US.

Additionally, investors also await the US JOLTS Job Opening data for February and the ISM Manufacturing PMI data for March, which will be published at 14:00 GMT.