An anticipatory session as the market awaits the RBA's monetary policy decision. A 25bp cut to bring the cash rate down to 2.5% has been largely discounted by the market. Traders will also be paying close attention to the accompanying statement for guidance on the direction of future monetary policy initiatives. If the RBA hints that more cuts may be in the offing or they surprise the market with a 50bp cut then the Aussie could come under renewed pressure. Conversely, an ambiguous statement or if they decide to leave rates on hold could see the Aussie rally on a "sell the rumor, buy the fact" trade.
Australia’s House Price Index posted a +2.4% in the last quarter which was higher than both estimates of +1.0% and last quarter's reading of +0.8%. This is not particularly worrisome right now, but if this trend continues then the RBA might be forced to rethink further cuts as they would definitely not want to stoke a housing bubble.