The Australian dollar stabilized near $0.647 on Wednesday, following an over 0.5% loss in the previous session, as a weaker US dollar offset soft domestic GDP data. The greenback eased ahead of the May jobs report, which could shape the Federal Reserve’s policy outlook amid lingering tariff uncertainty. Meanwhile, Australia’s Q1 GDP growth coming in at just 0.2%, well below forecasts and previous quarters, reinforced expectations for further RBA rate cuts. The Reserve Bank of Australia, which has already cut rates twice this year and even considered a larger May cut, is expected to further downgrade its economic outlook, with markets now pricing in an 80% chance of another rate cut in July. Despite the soft data, investors were somewhat relieved the outcome was not worse, supporting the Aussie near current levels. Markets also reacted positively to sustained growth in Australia’s composite and services sectors, alongside a slight improvement in manufacturing, despite ongoing weakness.