"Consumers are in a sweet spot at the moment. The labour market is strong, accumulated savings are elevated and it appears households are resilient to a slow vaccine rollout," said CBA economist Belinda Allen.
Since the last meeting, the government has introduced new measures to cool the red-hot housing market which should make it easier for the central bank to maintain its stimulus.
The US Dollar Currency Index, which measures the greenback against a basket of six currencies, was 0.101% lower at 92.213.
Upbeat European data on Wednesday showing euro zone business activity bounced back to growth last month, also supported the common currency against the greenback.
"If the AOFM sticks with issuance of A$230 billion there will be a significant pre-funding of next year's deficit, which is on track to be much smaller than expected."
However, the conservative government has often ruled out any changes to taxes for investment in housing and is unlikely to follow New Zealand's example.
Yields on Australian 10-year paper eased to 1.82%, from 1.87%. That left the spread over Treasuries at 12 basis points, a long way from the 39 basis points seen at one stage of the mass sell-off in February.
The dollar index held steady overnight then rose as European markets opened, before slipping to 91.807 at 1237 GMT, down by less than 0.1%.
Markets are in this flux period where they're gripping on to marginal bits of information, but there's nothing to define a new broad dollar trend until we get some more colour from the Federal Reserve tomorrow.
Yields in 10-year bonds were one basis point higher at 1.78%. They reached a 23-month high of 1.97% on Feb. 26 on bets of rate hikes as early as next year. Bond futures were also stable at 98.229.
New Zealand inflation expectations for the year posted a large rise to 1.77%, from 1.23% previously, a survey by the central bank showed, while two-year expectations rose 30 basis points to 1.89%.