As the European stock markets suffered greatly yesterday, Australian Dollar sunk to 105.52 cents, 0.19 cents lower from yesterday's 105.71 cents at 0500 on Tuesday. Experts say Australian Dollar might continue to trade poorly as crises in European sovereign debt worsens.

French market dropped 4.7 percent, while German plummeted 5 percent, and London's FTSE index immersed 3.6 percent further. Due to a labor holiday, the U.S. markets were closed on Monday.

The Australian dollar suffered at early morning trade treading the range of 105.52 to 105.60 cents path against the U.S. dollar but is expected to trade higher by mid-day in anticipation of the RBA meeting to deliberate on the cash rate on Tuesday afternoon.

The Aussie felt the perils of the EU decision to enact another debt rescue package for Eurozone economies.

European Central Bank president Jean-Claude Trichet said in overnight reports that Greece will need another enactment of a debt rescue, and eurozone economies need to tighten and instill more fiscal discipline.

In an attempt to thwart the eurozone debt crises from reaching Italy, ECB raised its emergency bond purchases to 13.3 billion euros last week. But the debt crisis in the eurozone is already an enormous amount to bail out, said in a related report on perthnow.com.

RBA's Next Move

The board of directors for Reserve Bank Australia will have its monthly meeting to decide on the cash rate, which is expected by the market to remain at 4.75 percent.

IG Markets strategist Ben Potter said in an emailed statement to clients that the downbeat sentiment from the U.S. and the Euro zone will be reflected in today's trading.

"It's going to be a very ugly start for local trade as, once again we get dragged lower the global macro concerns. On the economic calendar, home loans and current account data is due for release at 11.30am ahead of the Reserve Bank of Australia interest rate decision at 2.30pm this afternoon. As it stands, all economists are expecting the RBA to keep rates on hold although the interest rate futures market is pricing in a 25 percent chance of a 25 basis point cut," Mr Potter said.