FX.co ★ Aussie Dollar on 5-Session Decline

The Australian dollar fell below $0.652 on Tuesday, marking its fifth consecutive day of losses, as the Reserve Bank of Australia (RBA) maintained its benchmark interest rate at 3.60% amidst ongoing inflation and economic uncertainties. Earlier this year, RBA Governor Michele Bullock highlighted a "wait-and-see" approach, indicating that further policy shifts would be contingent on forthcoming data, specifically inflation returning reliably to the 2%-3% target range. However, the third-quarter Consumer Price Index (CPI) complicated this outlook, as both headline and trimmed mean inflation rose beyond expectations, suggesting persistent underlying price pressures. The RBA also acknowledged that global uncertainties, including geopolitical risks and trade tensions, could dampen demand and potentially impact domestic labor market conditions. Externally, the Australian dollar faced increased pressure against the US dollar after Federal Reserve officials expressed a more cautious stance regarding the timing of potential interest rate cuts.