- As expected the Reserve Bank of Australia left rates unchanged at 3.00%. In its commentary, the central bank omitted the phrase "outlook for inflation allows scope for further easing", which was included in the July statement. In terms of growth, the RBA said that the downside risks to the Australian economy have declined and that the most likely scenario is for a period of slow/sluggish growth. Additionally, the RBA said the higher Australian dollar would help moderate inflation.

- In terms of economic data, New Zealand's Q2 private wages data was lower than expectations ( NEW ZEALAND Q2 PRIVATE WAGES INC OVERTIME Q/Q: 0.3% V 0.5%E; EXC OVERTIME: 0.3% V 0.5%E). South Korea's foreign exchange reserves rose for the 6th consecutive month as the weaker dollar increased the value of Korea's non-dollar denominated assets. In Australia, June retail sales unexpectedly declined, while quarterly retail sales rose more than expected ( AUSTRALIA JUNE RETAIL SALES M/M: -1.4% V 0.5%E; EX INFLATION Q/Q: 2.0% V 1.3%E ). Additionally, Australia's Q2 home price index exceeded market expectations.

- In currencies, the dollar traded broadly weaker against the commodity currencies as the Canadian traded to a fresh 10-month high against the greenback earlier during the session. However, the commodity currencies have since pared their gains following the RBA's interest rate decision. In terms of the European major currencies, the EUR and CHF have pared their earlier gains against the dollar. Additionally, the British pound has moved away from its highs, after trading above 1.7000 against the dollar earlier during the session. The Yen has firmed across the board, as the Nikkei pared its gains.
Earlier in the session, both the AUD and NZD rose to multi-month highs against the Japanese currency

- The Nikkei 225 is higher but has moved off of its best levels. The best performing sectors in Tokyo include financials and technology companies. Australia's S&P ASX 200 is higher by more than 1%, led by gains in shares of miners and banks.
South Korea's Kospi has moved into negative territory on profit-taking in shares of banks. In China, the Shanghai Composite is declining by more than 0.50%, led by weakness in shares of telecoms and financials. In Hong Kong, the Hang Seng has pared its gains on the weakness in shares of oil/gas companies and telecoms. In Taiwan, the Taiex is declining on losses in shares telecom and technology shares.

- Crude oil prices are trading lower but have moved off of their lows. During the US session, oil prices rose by more than 2.9% to a 7-week high on the gains in equities, better than expected manufacturing data and the weaker dollar. Spot Gold is lower by more than 0.05%, tracking the weakness in oil prices, after the metal rose by $3/oz during the NY session. In terms of physical demand for gold, it was reported that India's, world's largest buyer of gold, gold imports in July declined to 7.5 tons from 24 tons a year ago. (Note all quotes are as of 01:15 EST)