Aussie Dollar Steady as RBA Holds Rates
The Australian dollar remained stable around $0.659 on Tuesday, following the Reserve Bank of Australia’s decision to keep the cash rate unchanged at 4.35% for the eighth consecutive meeting, in line with market expectations.
The central bank’s cautious stance reflects ongoing concerns about inflationary pressures while aiming to support employment growth. Investors are now focused on the RBA’s updated economic forecasts and Governor Michele Bullock’s press conference for clues on the potential timing of the bank’s first rate cut.
Meanwhile, final data showed that private sector activity in Australia turned positive in October, with growth in the services sector offsetting a continued decline in manufacturing. Externally, the Aussie gained some support from a pullback in the US dollar, as traders unwound some of their “Trump trades” amid rising uncertainty surrounding the US presidential election outcome.
Source : Trading Economics
