The RBA is widely expected to keep interest rates unchanged today.
Foreign Exchange investors will be listening for comments about the Aussie Dollar.
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The AUD/USD has risen by 4.5% this year on a trade weighted basis, and RBA Governor Philip Lowe has signalled that the central bank would like a weaker currency.
The sharp improvements in domestic terms of trade (rising coal and iron ore prices) appear to have largely run their course. The AUD/USD was sold through .7600 last week for the first time since late January. Initial support is now seen in the .7530 area.
In the last RBA statement, Governor Lowe made it clear that he was looking at three factors in determining the path for monetary policy: Inflation, the labor market and household balance sheets.
Of these factors, weakness in the labor market looks to be supportive of another rate cut.
Looking at the expansion of household balance sheets suggests the RBA should look to raise rates. However, the benign outlook on price inflation signals that the central bank can leave rates unchanged.
We will see the result at 2:30 Sydney time.
