The RBA announce their interest rate decision during the Asian session. 18 out of 26 analysts surveyed by Bloomberg expect the RBA to cute rates by 25bps to 1%, while the other eight analysts expect the RBA to remain on hold at 1.25%.

The markets have priced around a 70% probability of a rate cut and therefore we expect the this to be a volatile event.

Last month the markets had fully priced a rate cut, and AUD rallied on the release (though it was short lived).

We see a cut to 1.00% as high risk, and therefore will only be trading this event if the RBA remain on hold.