Australian shares are expected to open in a tight range on Tuesday as investors look toward the RBA's rate decision later in the session, following a commodities rally after China's Politburo pledged enhanced measures to support its slowing economy.
ASX 200 futures were up just 3 points by 8 am AEDT (9 pm GMT), though earlier gains were tempered by late selling on Wall Street, where profit-taking and concerns over China's investigation into Nvidia pressured the technology sector.
Overnight, China announced it will adopt a "moderately loose" monetary policy, marking a significant shift from its previously "prudent" stance. This change was revealed in an official readout following a meeting of top Communist Party officials.
The Politburo also pledged “more proactive” fiscal policies, fuelling speculation that Beijing will widen its fiscal deficit beyond 3% during the annual parliamentary session in March.
U.S.-listed shares of Australian mining giants BHP and Rio Tinto surged by 4.6% and 4.5%, respectively, reflecting optimism over rising commodity demand.
Among data releases, the Reserve Bank of Australia will announce its latest cash rate decision at 2:30 pm AEDT (3:30 am GMT). The central bank is widely expected to maintain rates at 4.35% for the ninth consecutive meeting, as policymakers grapple with persistent underlying inflation pressures.
Investors will also monitor Platinum Asset Management, whose shares plunged 14.4% on Monday after a prospective takeover by Regal Partners collapsed.
On the bond markets, 10-year and 2-year rates were at 4.262% and 3.897%.