One of the main focus of the market this week is the Reserve Bank of Australia (RBA) policy meeting which is expected to keep interest rates and three-year bond yield targets at a low of 0.10% at the first meeting for this year tomorrow.
The RBA has previously implemented a six-month bond purchase program, AU $ 100 billion and runs a bank loan facility.
As Australia's job market recovers and sentiment strengthens as well as household spending increases, the market sees the central bank will remain with the current approach.
Yet at the same time, it is still too early for the central bank to reduce quantitative easing.
This is because the job market faces risks after the government subsidizes wages to be terminated in March, and this has the potential to trigger job reductions and bankruptcy.
Meanwhile, with the central bank expected to continue to maintain its current monetary policy, it is expected to stimulate weak Aussie dollar trading.
During the opening of the European session, the Aussie dollar traded gloomy despite recording a slight increase in the previous Asian session.
