Fund managers say traders have overblown the comments from governor Michele Bullock and are siding with the central bank on the rate outlook.

A staged rollout means the rebates hit bills in Queensland and West Australia in July and other states in August. The Bureau of Statistics says they took 6.4% off the average national power price in July and Westpac expects them to have taken off a further 15% in August.

The Australian dollar hovered close to its highest level this year on Tuesday, with the central bank set to hold policy steady later and traders focussed on any hints of potential near-term easing.The currency also got support from stimulus measures announced by the People's Bank of China.