The AUD/USD is undergoing a correction after achieving recent highs.

The Australian dollar, in tandem with the US dollar, is experiencing a weakening phase as part of this correction. The current AUD/USD exchange rate stands at 0.6585.

In today’s meeting, the Reserve Bank of Australia decided to maintain the interest rate at 4.35% per annum, aligning with the market's consensus forecast. In its statements, the RBA indicated that future decisions regarding tightening would hinge on incoming data.

With inflation in Australia showing signs of slowing down, as evidenced by the CPI indicator for October dropping to 4.9% y/y from 5.6% earlier, the central bank might exercise caution in pursuing tightening measures.

Australia's interest rate is currently at its 12-year high.

It's noteworthy that the Reserve Bank of Australia is known for its flexibility in adjusting the interest rate trajectory. If there are compelling reasons to lower the borrowing cost, the central bank is likely to act promptly.

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