Australian Dollar Dips as Central Bank Shifts Stance

The Australian dollar nears a four-month low after the central bank adopts a softer policy tone, hinting at a potential rate cut. The U.S. dollar remains steady, gaining against the yen. Investors eye U.S. inflation data for clues on Federal Reserve moves. Euro, sterling, and yuan also see changes.

The Australian dollar approached a four-month low on Tuesday as the central bank signaled a softer policy stance, leading to speculation about an imminent interest rate cut.

While the U.S. dollar held steady against other major currencies, it strengthened against the yen as traders awaited key inflation data from the United States.

The Reserve Bank of Australia maintained its interest rates but hinted at potential cuts, aligning with market expectations for adjustments in the coming year. The financial markets are closely watching this week's economic events, including meetings of the European and Chinese central banks, and the Bank of Canada and Swiss National Bank.

(With inputs from agencies.)