FX.co ★ Aussie Dollar Snaps 3-Day Decline

On Monday, the Australian dollar rose to approximately $0.654, halting its three-day decline as investors anticipated the upcoming monetary policy decision from the Reserve Bank of Australia. The central bank is largely expected to maintain current interest rates after implementing three reductions earlier this year. This outlook is largely influenced by stronger-than-expected inflation figures, which have moderated predictions of further monetary easing. In the third quarter, annual headline inflation surged to 3.2%, up from 2.1% in the preceding quarter, while the trimmed mean measure increased to 3% from 2.7%. Additionally, Australia's Monthly Inflation Gauge, as reported by the Melbourne Institute, grew by 0.3% in October 2025 on a monthly basis, slightly below the 0.4% rise in September. Current swap data suggests a less than 7% likelihood of a rate cut, and expectations for further reductions in December and February have been significantly diminished.