The Reserve Bank of Australia monetary policy board meets today. There is no change expected on rates, with the OIS market pricing in just a 4% chance of a 25 basis point cut.

Market attention will be on the accompanying statement, which should give an idea of how far the RBA has now moved away from an easing bias.

In the accompanying statement on August 6 the RBA said that the “inflation outlook could provide some scope to ease policy further, should that be required to support demand”, while the minutes of the August 6 meeting (released August 20, more here) confirmed a lessening of the easing bias that had been prevalent before.

Today’s statement will be examined for indications that the easing bias has receded even further in the aftermath of some signs of improving economic data points in Australia, China, and Europe. A lessening, or removal, of the easing bias should provide further support for the AUD.

We get the RBA announcement and accompanying statement at 2.30pm local (Sydney) time, which is 0030 US EDST and 0430GMT.

Glenn Stevens, RBA Governor

Glenn Stevens, RBA Governor