Australia recorded its fastest annual pace of growth in three years in Q1, which could keep the RBA on hold at its meeting next week.
The dollar was mostly flat against a basket of major currencies after U.S. data failed to support expectations for a June or July Fed hike.
The U.S. dollar rose against the yen for a second straight day and hovered near its highest level in roughly 10 weeks against the euro.
Asia markets mostly closed higher on Wednesday, with Hong Kong leading gains and several major indexes advancing more than 1 percent each.
Asian markets fell on Tuesday, led by declines in Japan and China, as investors await further cues from the Fed ahead of its June policy meeting.
Bets against Australia's Big Four banks have piled up amid rising concerns that the country's property prices could be about to fall off a cliff.
The dollar rallied to a three-week high against the euro and a basket of currencies on Wednesday.
The U.S. dollar dipped against a basket of major currencies on Tuesday amid U.S. inflation data.
NAB's Ivan Colhoun says RBA members needed persuasion to cut rates as they tried to figure out if the low Q1 CPI was a signal or merely noise.
Australia's central bank members discussed leaving rates on hold on May 3 but decided on balance a cut would help return inflation to target.
HSBC's Paul Bloxham suggests investors look out for why the RBA delivered a rate cut in April and if its "reaction function" has changed.
BT Investment Management says Australia's central bank could be next to embrace negative interest rates.
The Reserve Bank of Australia could be the next central bank to embrace negative interest rates, according to BT Investment Management (BTIM).
The yen hit a 10-day low after Japan's finance minister said Tokyo was ready to intervene in the currency market if needed.
The dollar rose against a basket of currencies after William Dudley told the NYT the Fed may raise interest rates twice in 2016.
RBA's low inflation forecast is a sign: The central bank can cut interest rates and probably will, says Invast's chief market strategist, Peter Esho.
Australia's central bank slashed its inflation forecasts on Friday and warned that the outlook for wages and price pressures were a key uncertainty.
Mathias Cormann, finance minister of Australia, explains how the new budget will make the country's tax system more growth friendly.
The dollar rose, rebounding from recent lows against the yen and euro.
Mervyn Tang, director of Asia-Pacific sovereigns at Fitch Ratings, talks about the decision by the Reserve Bank of Australia to cut rates.