Ahead of the federal budget release on Tuesday, Australian Treasurer Josh Frydenberg said his government will ramp up spending on defense and national security while reducing household expenses.

Key quotes

With Russia at war with Ukraine and China's military becoming more assertive, "further investments in defense and national security reflect the challenges that we now face."

"Tonight in a temporary, in a targeted, in a responsible way, we will provide the cost of living relief.”

“Would also reveal a "material improvement to the budget bottom line."

On Monday, Australian Prime Minister Scott Morrison announced that his Coalition will roll out an extra AUD17.9 billion (USD13.4 billion) on road and rail projects over the next ten years if he is re-election for the second term in May general election, per Xinhua News Agency.

Market reaction

AUD/USD is little changed on the above headlines, currently trading at 0.7485, modestly flay on the day.