With the U.S. Federal Reserve expected to hike rates and the less positive outlook for China, AUD will be headed lower, says Robert Rennie, Westpac Bank.
Australia reported first quarter GDP that beat expected 1.5 percent gain on year.
Axel Merk, Merk Investments, says the Australian economy is "decent" but the biggest risk it faces is China.
Andrew Ticehurst, Nomura Australia, says the RBA's decision might have been the same, but it's starting soften its language.
The Reserve Bank of Australia held its benchmark cash rate at a record low 1.5 percent as expected on Tuesday and points to weaker growth in the March quarter.
If the Australian economy accelerates in line with consensus, the Aussie could be heading higher this week, says Elias Haddad, Commonwealth Bank.
Australia’s long-suffering wanna-be homebuyers were likely to be disappointed by the budget's housing affordability measures, analysts said.
U.S. Treasury Secretary Steven Mnuchin commented on the possibility of ultra long-term bond issuance.
Asia markets closed mixed as traders parsed the RBA decision's to hold steady, key bank earnings in Australia and Singapore, and the dollar.
The Reserve Bank of Australia held steady as widely expected in its latest monetary policy decision.
Australian consumer price inflation topped 2 percent last quarter for the first time since 2014 as petrol, health care and education got more expensive.
Australia adds 60,900 jobs in March, reversing the previous month's 6,400 fall and beating Reuters forecast of 20,000 additions.
Asia markets ended lower on Tuesday, with the Australian dollar slipping in the wake of the RBA's on-hold call.
The RBA kept interest rates on hold at a record low of 1.5 percent on Tuesday, remaining stuck between rising housing prices and a higher jobless rate.
Steven Milch, Suncorp, talks about the Reserve Bank's decision to keep rates on hold and regulatory impact on the Australian housing market.
Andrew Ticehurst, Nomura Australia, previews the Reserve Bank of Australia's policy decision.
Australia's trade surplus came in much higher than expected in February, but that's likely a signal of economic weakness, not strength.
Felicity Emmett, senior economist at ANZ, says outside the housing market, other economic indicators in Australia appear weak.
Gareth Aird, Commonwealth Bank, says the RBA is likely to keep rates on hold at 1.5 percent.
Australia's central bank saw growing risks in the nation's hot housing market.