The yen soared to its highest in 17 months against the dollar as sentiment in stock and commodity markets soured, with crude oil retreating.
Asia markets ended mostly lower on Tuesday, with Japanese shares losing ground on the back of a stronger yen.
Australia's central bank left its cash rate unchanged at a record low of 2 percent amid signs the economy is steadily shaking off a mining downturn.
Nomura Australia's Andrew Ticehurst says the RBA statement showed little concern about the AUD/USD and maintained its easing bias.
The RBA is expected to wait for the upcoming budget release to get a clearer fiscal outlook, says Xavier Denis from Societe Generale Private Banking.
HSBC's Paul Bloxham expects RBA to hold rates steady and repeat its previous commentary about the Aussie dollar while maintaining an easing bias.
NAB's Ivan Colhoun expects no change from the RBA because the Aussie dollar is not significantly stronger and growth prospects are still good.
Central banks in India and Australia are set to issue policy calls, amid bad-debt concerns in both countries. Singapore's central bank will also meet.
The yen and the Swiss franc rose while the euro fell after explosions in Brussels spurred inflows into safe-haven currencies and assets.
Asia markets were mixed on Tuesday, with the Nikkei up 2 percent and Shanghai down 0.2 percent, after U.S. equities squeezed out gains overnight.
The Bank of Thailand faces a tough policy decision, while SKorea will release Q4 GDP and Japan offers up inflation data in a short week.
Most Asian markets advanced Thursday as investors cheered clarity from the Federal Reserve and a rise in oil prices, but Japan shares lost ground.
Most Asia markets lost ground Tuesday, tracking Wall Street's weak performance, with analysts saying traders are turning more cautious after the recent rally.
Asian markets rose Wednesday, with China leading advances after a strong finish on Wall Street overnight.
Australia's economy expanded an annual 3% rate in Q4, well above Q3's 2.5% rise, but commodity prices and income growth remain a worry.
The U.S. dollar rebounded against the yen and hit one-month highs against the euro on Tuesday.
Emily Dabbs from Moody's Analytics says the RBA is unlikely to change rates in 2016, but will monitor the markets and employment data closely.
The move was widely expected given signs that the domestic economy was holding up in the face of global headwinds.
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The Reserve Bank of Australia said the pace of economic growth should pick up gradually in the next few years without inflation being a problem.