$A lower ahead of RBA decision THE Australian dollar is lower ahead of the Reserve Bank of Australia's interest rate decision. At 0700 AEST on Tuesday, the currency was trading at 102.54 US cents, down from 102.72 US cents on Monday afternoon. The Reserve Bank of Australia (RBA) will announce its interest rate decision at 1430 AEST on Tuesday after its monthly board meeting. All 13 economists surveyed by AAP last week expected the RBA to keep the cash rate unchanged at three per cent. But BK Asset Management managing director Kathy Lien said the market had put the odds of a rate cut at around 55 per cent. Ms Lien said that while a rate cut would push the Australian dollar below 102 US cents, traders would also look closely at the statement accompanying the decision. She said a cautious and dovish statement would weigh on the currency, even if the cash rate remained unchanged. "Whether the AUD (Australian dollar) holds above 1.02 or drops to fresh two-month lows will hinge upon the tone and action of the RBA," she said. Given the potential for a rate cut and the significance of this event, the risk is to the downside.