Sean Callow, analyst at Westpac, notes that Australia’s federal budget is typically delivered in May but with an election required no later than 18 May, the government has opted to announce the budget on Tuesday.

“Given that even a short election campaign would be around a month, parliament will be dissolved in April, allowing very little time for any legislation announced on Tuesday to become law. The budget will probably draw more interest than the RBA decision a few hours earlier, with a steady hand at 1.5% very likely, along with limited change to the statement. The week ahead includes plenty of Australian data, with February updates on retail sales, building approvals and the trade balance all due. Along with the federal budget, these will be important for the Aussie dollar’s ability to keep avoiding a break of 0.7000, as markets weigh up the case for RBA rate cuts.”