Australian wages picked up in the March quarter led by government pay rises, data showed on Wednesday, while subdued growth in the private sector suggested a tight labour market was still no bar to a cut in interest rates, Reuters reported. Investors remain confident the Reserve Bank of Australia will cut by a quarter point to 3.85% at its May 20 meeting, due to cooling inflation at home and global uncertainty caused by U.S. tariff policies.

Australia's biggest banks face a pivotal earnings test next week as they navigate mixed interest margin prospects in the face of looming rate cuts, persistent inflation concerns and rising mortgage stress, Reuters reported. The results arrive after a politically-charged election set for May 3 dominated by cost-of-living anxieties that are reshaping banks' mortgage books and consumer lending patterns.

Core inflation in Australia slowed to a three-year low in the first quarter as costs in the services sector cooled markedly, data showed on Wednesday, supporting the case for another cut in interest rates in coming weeks, Reuters reported. Investors are fully expecting a quarter-point rate cut from the Reserve Bank of Australia on May 20 given the darkening outlook for global growth caused largely by U.S. tariffs, even as a stronger-than-expected reading in headline inflation saw some scale back aggressive bets for five rate cuts this year.

Queensland's government has put a politically connected cybersecurity business into insolvency within six months of it winning a state contract to run a $15 million safety program, ABC.net.au reported. Cryptoloc Holdings' liquidation was executed this month in the Supreme Court after failing to repay $1.51 million demanded by the state for money already advanced, the ABC can reveal. Court-filed correspondence shows a disintegration of confidence amid questions about Cryptoloc Holdings' financial strength and spending.

Australia has swiftly turned down China's offer to "join hands" against Donald Trump's tariffs, as Washington escalates its trade war with Beijing, BBC.com reported. The White House recently imposed an import tax of 10% on Australian goods, but for China - Australia's biggest trading partner - raised tariffs to 125%. China's ambassador to Australia Xiao Qian argued joint resistance is "the only way" to stop the "hegemonic and bullying behaviour of the US", appealing for Canberra's cooperation in an opinion piece on Thursday.

Australia's central bank on Tuesday left its cash rate steady as widely expected but took a small step towards further easing in a policy meeting dominated by risks of a global trade war, Reuters reported. Wrapping up its April policy meeting, the Reserve Bank of Australia (RBA) held interest rates steady at 4.1%, having just cut them by a quarter point in February for the first time in over four years. "Monetary policy is well placed to respond to international developments if they were to have material implications for Australian activity and inflation," the board said in a statement.

Australian retail sales rose modestly for a second straight month in February as a long-awaited cut in interest rates combined with slower inflation to boost consumer sentiment and spending power, Reuters reported. However, the recovery in consumer spending is still tepid, suggesting consumers remain cautious and would not be a bar to more policy easing. The Australian dollar was steady at $0.6241 and three-year bond futures were little changed at 96.31.