FX.co ★ Australian Dollar Rises on RBA Decision

On Tuesday, the Australian dollar climbed to approximately $0.663, recovering from the previous day's decline. This uptick in market sentiment followed the Reserve Bank of Australia's (RBA) recent monetary policy decision. In line with expectations, the central bank maintained its cash rate at 3.60% for the third consecutive meeting. The decision was reached unanimously, with policymakers indicating that inflationary pressures are beginning to reemerge and the labor market remains constricted. Additionally, the RBA emphasized that any future adjustments in policy will rely on forthcoming economic data. Looking ahead, markets have priced in nearly equal chances of a rate hike potentially occurring as early as May 2026. Meanwhile, most economists now believe the easing cycle has concluded, having previously anticipated at least one more reduction to 3.35%. Investors are also keenly observing as Governor Michele Bullock is set to hold a press conference later today, hoping for further insights into the central bank's policy direction.