The Reserve Bank of Australia may cut interest rates by 25 basis points at next week's meeting.

According to a report from Jin Shi Data, IG Markets analyst Tony Sycamore stated that Australia's strong employment data in April reminds people that the labor market is resilient. However, as inflation returns to the Reserve Bank of Australia's target range, high tariffs pose downside risks to global economic growth, and the Reserve Bank of Australia is still expected to cut interest rates at next week's meeting.

Since the employment report was released, rate market traders have slightly reduced the probability of a 25 basis point rate cut next week from 90% to 80%.