At its meeting today, the Board decided to lower the cash rate by 25 basis points to 2.0 per cent, effective6 May 2015.

The Reserve Bank of Australia is widely tipped to cut interest rates for the second time this year when its board meets on Tuesday, despite signs that the economy is improving and its fears about further stoking Sydney's hot housing market.

Of the 27 economists recently polled by Bloomberg, 23 are forecasting a 25 basis point (or a quarter of a percentage point) cut to an all-time low of 2 per cent in the cash rate at the meeting.

A lot of currency traders learned a big lesson this week; one that bears discussing.

Since last December, the Royal Bank of Australia has been hinting at raising rates. The Aussie economy had been doing well and showed signs of overheating. Prices for food, housing, beer and just about everything has been rising but not at an alarming rate. Well, some AUD traders made a big mistake. They anticipated the “promised” rate increase the RBA had been hinting.