Forexlive European FX news wrap: The AUD rallies on unexpected tax cuts

• Trump is considering a two-step tariff regime on April 2 - FT
• ECB's Vujcic: April meeting is completely open, more data is needed
• The Citi US Economic Surprise Index is climbing back into positive territory
• Koala-fied for a Rally – Aussie Dollar Climbs on Pre-Election Tax Cuts
• ECB's Kažimír: We are open to discuss a rate cut or pause in April
• Russia says content of talks with US will not be disclosed in public
• Germany March Ifo business climate index 86.7 vs 86.7 expected
• Traders shrink bets on Fed rate cuts following the US PMIs
• Australia brings out new tax cuts in latest federal budget announcement
• What are the main events for today?
• US-Russia talks said to be not simple but useful
• Japan PMI Ishiba reportedly to introduce strong measures to counter rising prices
• BOJ governor Ueda: Still need some time to consider what to do with ETF holdings
• FX option expiries for 25 March 10am New York cut

The big news in the European session was the Australia's center-left government unveiling an unexpected tax cut and an extension of energy rebates in the pre-election budget in what looks like an attempt to shore up political support and help secure Prime Minister Anthony Albanese a second term in office.

The Australian Dollar and Australian Bond Yields got a boost from the news as it could make the RBA's job of bringing inflation sustainably back to target and lower interest rates harder.

The other noteworthy news was the FT report saying that Trump is considering a two-step tariff regime on April 2 using rarely invoked emergency powers to impose immediate tariffs while conducting formal investigations into trading partners. The market largely ignored this piece of news though.

Looking ahead, we have the US Consumer Confidence report coming up where better than expected (or not bad as feared) data could further boost the market sentiment.