The focus now is on the Reserve Bank of Australia (RBA) which is widely expected to cut its cash rate by 25 basis points to a record low 2.5 percent. The decision is due at 0430 GMT.
“We may see a sharper selloff in the AUD/USD should the RBA keep the door open to further rate cuts in the coming months,” said David Song, currency analyst at DailyFX.
“The central bank may retain a dovish tone for monetary policy throughout 2013 as China – Australia’s largest trading partner – faces a more pronounced slowdown and continues to face a risk for a hard landing.”
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