The Nikkei rebounded from Tuesday's sell-off as most Asian markets waffled on Wednesday before key central bank decisions and major earnings reports. » Read More
The yen hit a high against the euro and rose against the dollar as traders lower expectations of a Japanese stimulus injection.
UBS WM's Wayne Gordon says the Fed might hike rates as soon as December because of improving U.S. data, which might lead to an unwinding of carry trades.
Asian central banks should be taking the opportunity to preemptively cut interest rates, says Barclays' Mitul Kotecha.
Australia faces the prospect of losing its vaunted AAA rating, after S&P Global Ratings lowered the outlook on the country's debt to negative.
The safe-haven yen hit a 3-1/2 year high against sterling on fears about the impact of Brexit.
The Japanese yen rose almost 1 percent against the euro and dollar while sterling fell to new long-term lows.
Most Asia markets stumbled on Tuesday, with shares in Australia falling amid an uncertain election outcome and an on-hold central bank.
Commonwealth Bank's Gareth Aird says there were not much clues in the RBA statement, but it is likely watching Q2 CPI before making a rate move.
The RBA's easing cycle will likely weaken the Australian dollar against the greenback, says BofAML's Claudio Piron.
The Reserve Bank of Australia will probably stay neutral as it won't want to add any fuel to the political uncertainty, expects HSBC's Paul Bloxham.
If the Labor Party wins, the fiscal environment would be different which would lead to the RBA less likely to cut rates, says BoS' Richard Jerram.
The RBA might not necessarily signal an easing bias in its July's statement in order to cut rates in August, says Nomura Australia's Andrew Ticehurst.
The RBA will likely wait until Q2 CPI figures come out before it reassesses interest rates, says Compass Global Markets' Tony Boyadjian.
Investors are not expecting a rate cut today, but will watch for hints of an August cut and any mention of the Brexit, says NAB's Ivan Colhoun.
The Aussie recovered from a wobbly start as commodities rose on expectations that central banks are likely to provide more stimulus.
Australian shares rose, shrugging off uncertainty over its inconclusive election outcome, to join a continuing post-Brexit rally across Asia markets.
Australia faces political uncertainties such as a credit rating downgrade and possible policy paralysis, explains TD Securities's Annette Beacher.
Australia will be in focus early this week, with markets set to parse election results, before the U.K. takes center stage.
As one of the few central banks with positive rates, the Reserve Bank of Australia still has room to cut by 25 basis points, says Kapstream Capital's Kumar Palghat.
With Australia's inflation rates below target range and growth slowing, the RBA has room to cut rates further, says S&P Global Ratings' Paul Gruenwald.