Australian Stocks Bounce Ahead of RBA Rate Decision

Australian stocks rebounded on Monday as investors awaited the Reserve Bank of Australia's (RBA) interest rate decision scheduled for Tuesday.

The S&P/ASX 200 index closed up 0.2% at 8,679.70 after a slight dip on Friday, but remains about 1.6% below its 200-day moving average.

Market expectations point to a 25 basis-point rate hike to 4.60%, with interest-rate swaps implying an additional 40 basis points of tightening after that.

The RBA's wording is expected to be closely watched, as a more hawkish message could quickly reprice swap expectations and impact the market.