The Australian dollar remained steady around $0.659 after the Reserve Bank of Australia decided to keep the cash rate unchanged at 4.35% for the eighth straight meeting, aligning with market expectations.
The decision highlights the central bank's cautious approach in response to ongoing inflationary pressures, while also aiming to support employment growth.
Investors are now concentrating on the RBA's updated economic forecasts and insights from Governor Michele Bullock's press conference to gauge the timing of the bank’s first potential rate cut.
Meanwhile, October data indicated a positive shift in private sector activity in Australia, driven by growth in the services sector, which countered a persistent decline in manufacturing.
Externally, the Australian dollar found some backing due to a weakening US dollar, as traders adjusted their positions amid heightened uncertainty regarding the US presidential election outcome.
The scenario indicates a complex interplay of domestic economic factors and international market dynamics influencing the Australian dollar’s performance.