Australia's central bank saw growing risks in the nation's hot housing market.
Australia's jobless rate climbed to a 13-month high in February and employment unexpectedly fell.
Weak wage growth and the property market are among the Reserve Bank of Australia's concerns, says Emily Dabbs of Moody's Analytics.
Gareth Aird of Commonwealth Bank says rising household debt is the reason the RBA hasn't cut interest rates despite low inflation levels.
The Reserve Bank of Australia held rates at a record low 1.50 percent as expected.
Ivan Colhoun, chief economist at National Australia Bank, says the Reserve Bank of Australia has to balance household debt levels with inflation.
Asia markets traded higher following U.S. losses as investors digest a speech from President Donald Trump.
Asia markets traded higher as investors continue to wait for policy details from the Trump administration on tax reforms and deregulation.
The RBA held interest rates steady on Tuesday, with the statement likely signaling the central bank will remain on hold for some time.
Paul Bloxham of HSBC weighs in on the RBA's decision to keep cash rates steady.
However, any future move from the RBA is likely to be a downward one, says Ivan Colhoun at the National Australia Bank.
With issues in the housing market and below-target inflation, the RBA is unlikely to change rates, says Gareth Aird at Commonwealth Bank.
Australian consumer prices rose by less than expected last quarter while core inflation stayed stubbornly stuck at all-time lows.
Asian shares traded mostly higher on Tuesday with the exception of mainland China and Hong Kong markets weighed by continued yuan weakness.
The economic outlook for Australia in 2018 is a matter of concern, says Ivan Colhoun at National Australia Bank.
Softer economic conditions suggest there will be greater accommodation from the RBA next year, says Andrew Ticehurst at Nomura Australia.
Asian shares were higher, with Japan's benchmark index up on a Trump announcement that saw SoftBank shares gain smartly.
The Australian economy shrank for the first time in over five years last quarter.
Asian markets bounced back on Tuesday with the central bank in Australia holding its benchmark rate steady.
The RBA's commentary focused on recovering global commodity prices, but the domestic Q3 GDP print could be negative, says Nomura Australia's Andrew Ticehurst.