Futures pointed to a mixed open for Asian markets on Tuesday, tracking slight declines in the U.S. overnight, as traders await a monetary policy decision from the Reserve Bank of Australia (RBA).
Australia’s SPI futures traded at 5,849, a touch lower than the ASX 200‘s previous close at 5,872.68. The Australian dollar traded at $0.7604, dropping from levels above $0.7650 reached in the previous week.
The RBA is set to announce its monetary policy decision at 2:30 p.m. local time, where economists mostly expect the central bank to hold the cash rate at a record low 1.50 percent.
“The RBA Board Meeting is unanimously expected to be on hold, though markets will be paying close attention to the post meeting statement,” said Tapas Strickland, an economist at the National Australia Bank.
He added the RBA has little appetite to ease policy further given concerns over “creating fragilities in household balance sheets” and also it was more optimistic on the global economy.
Strickland said the April statement could, however, have a slight dovish tone, given the ongoing softness in the labor market and Monday’s soft retail numbers.
Nikkei futures in Chicago traded at 19,045, while Osaka futures were at 18,990. The Japanese benchmark index finished the Monday session at 18,983.23.
“We head into Tuesday trade with a distinct risk-off vibe, although the moves in equities are probably best described as a ‘drift’, rather than a ‘spike’ lower,” said Chris Weston, chief market strategist at spreadbettor IG.
