The Australian dollar is sliding

The Australian dollar is falling as markets gear up for the Reserve Bank of Australia's Tuesday meeting.

The currency is weaker by 0.5% at .7568 as of 7:46 a.m. ET.

Most economists and analysts think the RBA will cut at the meeting, although it's also possible that the central bank will hold.

"The case for it is that price pressures are weakening, and credit growth is slowing. The currency has begun appreciating again, and the Federal Reserve cannot be counted on to lift US rates until the end of the year, at the earliest," explained Marc Chandler, the global head of currency strategy at Brown Brothers Harriman.

Meanwhile, "the argument against the RBA moving is that there is no urgency to exit the 'watch and wait' mode," he added.

As for the rest of the world, here's the scoreboard as of 7:46 a.m. ET:

• The euro is weaker by 0.1% at 1.1160 against the dollar after final Markit manufacturing PMI for the eurozone came in at 52.0 in July. Additionally, German manufacturing (53.8) was the strongest, while France (48.6) showed notable weakness.
• The British pound is weaker by 0.3% at 1.3185 against the dollar after the latest data from Markit showed that Britain's factory's recorded activity of 48.2 in July, well below the 49.1 flash estimate released on July 22. That number represents a low not seen since the beginning of 2013.
• The US dollar index is stronger by 0.2% at 95.72 ahead of several data points. Markit US manufacturing PMI will be released at 9:45 a.m. ET, while construction spending and ISM manufacturing are announced at 10 a.m. ET.
• The Japanese yen is down by 0.2% at 102.25 per dollar