Aussie dollar weakens after RBA rate hold, gains on China stimulus

The Australian dollar fell below $0.64 on Tuesday, reversing earlier gains, after the Reserve Bank of Australia held its policy rate steady at 4.35% for the ninth consecutive meeting.

Aussie dollar weakens after RBA rate hold, gains on China stimulus

Despite this, the RBA expressed "some confidence" that inflation was returning to target. Governor Michele Bullock also noted that the policy statement's language change was deliberate, reflecting softer economic data. Recent figures showed Australia's economy grew by only 0.3% quarter-on-quarter in Q3, missing the expected 0.4% growth. Business confidence also sharply declined in November, adding to concerns about the economic outlook.

Aussie dollar gains after China announces stimulus measures for 2025

However, the Australian dollar found some support late Monday following China's Politburo's announcement of "more proactive" fiscal measures and a "moderately" looser monetary policy for 2025 to boost growth.