The Reserve Bank of Australia is waiting to see how recent interest rate cuts flow through the economy before deciding if it needs to cut the cash rate further in 2013.
Gold has moved lower, with volumes easing as US markets closed for the President's Day holiday, while a lower euro and flat European shares also hurt investor interest.
Bendigo and Adelaide Bank says interest rates on deposit accounts may be about to fall as other sources of funds become cheaper and more accessible for banks.
Economists from two of Australia's largest banks say several more interest rate cuts are needed to support the economy in 2013 as the boom in mining investment peaks.
Federal Treasurer Wayne Swan is urging the Group of 20 major economies to close tax loopholes that allow profitable multinational companies to exploit differences in taxation regimes to avoid tax.
US stocks have traded flat despite the excitement from two giant M&A deals, the merger of American Airlines and US Airways, and Berkshire Hathaway and 3G's takeover of ketchup maker Heinz.
The Australian dollar marked time during the afternoon session after traders earlier pushed it to a fresh one-week high in response to brighter consumer confidence data.
A collection of lacklustre earnings reports and in-line economic data have capped US stock gains, with the markets gaining no bump -- or loss -- from President Barack Obama's key policy speech.
The Australian share market closed at its highest level since 2008 as bank stocks soared on a better than expected profit from Commonwealth Bank (CBA).
The Dow blue-chip stock index has climbed back above 14,000 to a fresh five-year high as markets await President Barack Obama's State of the Union address.
