FXstreet.com (Barcelona) - The RBA meeting comes in a few hours (3.30GMT) with almost null expectations of a rate cut. Ahead of the risk event, the AUD has been performing pretty well, with Societe Generale FX strategist Sebastien Galy noting that "AUD like other commodity currencies seem to be benefitting from some fairly strong reserve diversification flows."

As such, Mr. Galy adds that "the RBA will be keen to dampen these inflows and scare them off, lest it suffer the same fate as the EUR, overloved." The strategist had been suggesting "to buy some front end gamma in AUD on that risk based on our cheap/rich metrics, but now, it will be presumably the time to sell it" he said.