The Australian dollar edged lower Monday ahead of a Reserve Bank of Australia (RBA) rate decision, with September inflation above target and traders weighing the chance of another increase.
FXStreet reported the Australian dollar at about $0.7010 against the U.S. dollar at 8:47 a.m. ET (13:47 UTC) Monday, down 0.33%.
The RBA's cash rate target stood at 4.60% before the meeting. The bank raised its target by 25 basis points on Sept. 29 and said it would consider further increases if needed.
The Australian Bureau of Statistics (ABS) reported that consumer price inflation was 4.3% over the 12 months to September, compared with 4.0% over the 12 months to August. Trimmed mean inflation, which smooths some price movements, reached 3.6%, up from a revised 3.5% in August. The RBA's inflation objective is 2% to 3%, alongside sustained full employment.
Reuters reported that market pricing implied nearly 90% odds of a quarter-point increase. That move would put the target at 4.85%; Reuters said that would be the highest rate since 2008. The increase was a market expectation, not an announced RBA decision.
The RBA says changes to its policy rate can affect borrowing and deposit rates, as well as economic activity, employment and inflation. The decision was scheduled for 10:30 p.m. ET Monday (03:30 UTC Tuesday), or 2:30 p.m. AEDT on Nov. 3.
The U.S. midterm elections were scheduled for Nov. 3, 2026. The Congressional Research Service lists that as the next federal Election Day, while USAGov says the elections determine which parties hold majorities in the House and Senate.
The ABS scheduled its October CPI release for 7:30 p.m. ET Nov. 24 (00:30 UTC Nov. 25).
