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.
The uncertain outcome of Saturday's federal election heightened fears Australia could be consigned to three years of minority government and policy paralysis.
Japanese markets on Tuesday reversed early losses of as much as 1.13 percent to trade higher as rest of Asia close mixed.
Keeping rates steady this month was consistent with sustainable economic growth returning to target over time, Australia's c.bank said on Tuesday.
Commonwealth Bank's Gareth Aird forecasts Australia's unemployment rate for May could tick up to 5.8 percent and that the RBA might cut in August.
The dollar added to earlier losses on Wednesday after the Federal Reserve left interest rates unchanged, as was widely expected.
The Australian dollar strengthened on Tuesday after the Reserve Bank of Australia kept interest rates on hold.
Asia markets ended up on Tuesday, taking a generally positive view of comments from Yellen and from central bank calls in Australia and India.
Konstantinos Venetis, global economist at Lombard Street Research, comments on the decision by the Australian central bank to hold interest rates.
RBA's decision to hold is most likely because it wants to see the impact of last month's rate cut on inflation, Moody's Analytics' Emily Dabbs says.
Australia experienced strong GDP growth but low inflation, which leaves room for the RBA to cut rates later, says HSBC's Paul Bloxham.