Separate report on Building Approvals showed that in seasonally adjusted estimate for total dwellings approved rose 3.1% in February following a fall of 6.6% in the previous month. Private sector dwellings excluding houses rose 7.6% in February following a fall of 8.4% in the previous month, while private sector houses fell 1.2% in February and has fallen for two months.

From Australia, on Tuesday, Trade Balance data was published. In trend terms, the balance on goods and services was a deficit of $3,600m in February 2016, a decrease of $14m on the deficit in January 2016. In seasonally adjusted terms, the balance on goods and services was a deficit of $3,410m in February 2016, an increase of $254m (8%) on the deficit in January 2016. Analysts were anticipating deficit of $2,550m.

However, the focus of the session was on RBA interest rate decision and the following statement. The Reserve Bank of Australia held its cash rate at a record low 2.0% as expected on Tuesday, but noted that new information should allow a better assessment of the labor market. At today's meeting, the Board judged that there were reasonable prospects for continued growth in the economy, with inflation close to target.

The Board therefore decided that the current setting of monetary policy remained appropriate. Over the period ahead, new information should allow the Board to assess the outlook for inflation and whether the improvement in labour market conditions evident last year is continuing. Continued low inflation would provide scope for easier policy, should that be appropriate to lend support to demand.

This week markets will be looking at:

China's CPI/PPI (Monday 3:30)

NAB Business Confidence (Tuesday 3:30)

China's Trade Balance (Wednesday)

Employment Change/Unemployment Rate (Thursday 3:30)

China's GDP (Friday 4:00)

China's Industrial Production (Friday 4:00)