The Australian dollar edged higher to around $0.66 on Monday, extending gains from the previous week as investors digested the latest inflation report. The Melbourne Institute’s Monthly Inflation Gauge showed a 0.4% increase in September 2025, rebounding from a 0.3% fall in August. The rebound reinforces signs that Q3 inflation may prove hotter than expected, even as the RBA seeks to maintain price growth within its 2–3% target range. The central bank held rates steady at 3.6% in September but noted that inflation remains stubborn - especially in market services - amid a tight labour market. While most economists still expect a rate cut in November and another in 2026, markets remain cautious, pricing in just a 40% probability of a cut next month. Investors are now turning their attention to speeches from RBA officials this week, which are expected to provide further insight into the central bank’s policy outlook.