The Australian central bank made a decision that exceeded market expectations when it kept interest rates unchanged for yesterday's July meeting.
It was expected to lower interest rates by 25 basis points, but the Reserve Bank of Australia (RBA) maintained interest rates at 3.85% as in the previous meeting.
The follow-up statement was observed with the central bank showing caution in continuing to ease monetary policy.
Expectations were off compared to the signal given at the May meeting for a 50 basis point cut in interest rates.
The Reserve Bank of New Zealand (RBNZ) is also expected to keep interest rates at 3.25% at its latest meeting in the Asian session this morning (Wednesday).
Next, market focus will shift to the FOMC meeting minutes report that will be published early Thursday morning.
The US dollar is still showing further strengthening until yesterday's New York session against several major currencies, but momentum faded towards the end of the session.
In addition, the market remains closely watching the progress of Donald Trump's tariffs with the 90-day grace period in April ending today, July 9. However, the deadline has been extended to August 1.
The tariff notification letter was sent by President Trump earlier in the week with most countries appearing to have failed to reach a negotiated agreement within the given period.
In a new development, Trump announced that he would impose a 50% tariff on copper imports, widening the threat of a global trade war.
