The RBA decision is at 0430 GMT

Bank of America Merrill Lynch Global Research discusses its expectations for the RBA's July policy meeting.

"The Reserve Bank of Australia (RBA) looks likely to deliver back-to-back cuts. They have signaled that easier policy will be needed,so would presumably want to avert a surprise considering current market pricing and an unwelcome tightening of financial conditions. We also expect a further cut in November, but focus will have to shift to other policy support. This may mean a flatter curve and some underperformance of AU relative to NZ rates,"BofAML projects.

"We expect the RBA to play a much greater role in short-term funding markets if there is ongoing commitment by the federal government on delivering surpluses. A more balanced approach to policy easing will also allow AUD to participate in any USD sell off driven by Fed easing," BofAML adds.

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