Asia markets opened lower on Tuesday, following a choppy U.S. trading session, as traders looked to a likely rate cut from the Reserve Bank of Australia, due in the afternoon.
Cuts in interest rates will have a negative impact on the Australian dollar. The strong Australian dollar, had pushed second-quarter inflation to its lowest level since 1998. To counterbalance these negative developments, the RBA is expected to provide additional monetary stimulus in August.
If Bank of Australia decided to leave interest rates unchanged, which is unlikely this will have a positive impact on the Australian currency and may see increases in price.
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