The Australian dollar remained steady around $0.638 on Wednesday, staying near four-month lows due to the dovish stance of the Reserve Bank of Australia.
Aussie dollar steady near lows as RBA holds rates
On Tuesday, as anticipated, the RBA kept its policy rate unchanged at 4.35% for the ninth consecutive meeting. However, the central bank expressed growing confidence that inflation was gradually returning to target. RBA Governor Michele Bullock highlighted that the policy statement's language change was intentional, reflecting softer economic data. Markets are pricing in a 63% likelihood of a quarter-point rate cut at the RBA’s February meeting, with two cuts fully expected by May.
Aussie dollar weighs down ahead of key data and US inflation report
Investors are now eyeing Australian employment data for release on Thursday for further economic insights. Additionally, the Aussie faced pressure from a strengthening US dollar ahead of a key US inflation report.
