The RBA will announce their latest monetary policy decision at 0430 GMT


The expectation is for the Australian central bank to keep its cash rate steady at 1.00% but markets still see odds of a 25 bps rate cut sitting at 10% currently.

The RBA isn't exactly known to pull off major surprises like its kiwi neighbour but in such unprecedented times for the global economy, you just never know.

Nonetheless, given minute changes to economic conditions since their August meeting, I would expect the RBA to keep things unchanged today. A further cut to the cash rate should come along around November but if the outlook deteriorates significantly over the next few weeks, one may come as soon as October.

A decision to keep its cash rate unchanged should see the central bank's messaging hold similar to August for the most part. As such, don't expect any fireworks in such an event.

A rate cut on the other hand will catch markets a little off-guard and prompt near-term aussie weakness which could see it move towards 0.6500 against the dollar. I reckon such a move will give markets the impression that the RBA is certainly much more willing to ease monetary policy and that sets up more dovish expectations for the future too.