Investing.com - The Australian dollar was flat to higher on Tuesday ahead of a central bank announcement on rates and trading thinly with U.S> markets shut on Monday for a public holiday.
AUD/USD traded at 0.9334, up 0.02%, while USD/JPY traded at 104.32, down 0.03%.
The Reserve Bank of Australia's monetary policy decision is due at 1430 Sydney time (0430 GMT). The RBA is expected to leave the cash rate unchanged at a record low 2.5%.
Other data releases this morning include Australia's July building approvals and the second quarter current account balance at 1130 (0130 GMT). Building approvals for July rose 1.5% month-on-month, according to expectations, and the current account deficit widened to A$14.0 billion.
At the same time, Japan's July average cash earnings data are due. The total average monthly cash earnings per regular employee in Japan rose 1.0% on year in June, marking the fourth straight rise and the sixth gain in the past 12 months.
Overnight, the pound remained higher against the dollar in light trade, but gains were capped by an earlier report showing that activity in the U.K. manufacturing sector expanded at the slowest pace in 14 months in August.
Meanwhile, investors continued to monitor the situation in Ukraine after European Union leaders threatened over the weekend to impose a new round of sanctions on Russia if Moscow does not end its support for the pro-Russian rebels.
Earlier Monday, Ukrainian troops lost ground around the eastern city of Luhansk following overnight clashes with pro-Russian rebels.
The conflict broke out in March after Russia's annexation of Ukraine's Crimea region.
Slowing growth in the euro area looked likely to add to pressure on the European Central Bank to implement fresh measures to shore up the faltering recovery in the region, ahead of its upcoming monetary policy meeting on Thursday.