The RBA's comments that output growth is slower than previously anticipated, following Monday's dismal building approval data (-7.8% in February compared with consensus for a 0.5% increase) and Tuesday's more mild disappointment on retail sale (0.2% vs consensus of 0.3), will keep the focus on domestic variables for the policy outlook. As we noted Monday, in the most recent reporting week, the net long AUD futures positions grew because the shorts covered. Some players appear to be re-establishing short positions and the Australian dollar has scope to test the $1.03 area. A break there could spur another 2 cent decline, especially if the CPI moderates. The market anticipates 80 basis points in cuts over the next 12-months.