All Eyes On RBA

Major pairs continue to hug narrow ranges after a quiet day on Monday with US markets closed for Labor Day, early gains for equity markets has engendered a positive risk tone and seen USD slip slightly. Markets are expected to tread water ahead of the RBA rate announcement later in the session where focus falls on the Bank's yet to be implemented tapering move.

• Both AUD and NZD have seen small gains so far as the greenback softens. Markets continue to mull yesterday's announcement that areas outside of New Zealand's largest city will move to alert level 2 from level 3, while Auckland will remain at the highest level 4 for at least one more week.
• JPY has gained a handful of pips after dropping on Monday, data showed real cash earnings rose 0.7%, above estimates of 0.6%, while household spending rose 0.7% against expectations of a 2.4% rise. Japanese front pages are dominated by political headlines, momentum still seems to be behind Taro Kono, Japan's vaccine czar. Japanese equity markets continue to rally with the Nikkei 225 looking above 30,000.
• Markets look ahead to the RBA rate announcement, Chinese trade figures are due to hit today while later in the day Eurozone GDP and employment figures are due.