The Australian dollar edged higher to around $0.649 on Tuesday, recouping some losses from the previous session, as the Reserve Bank of Australia signaled continued caution and emphasized a data-dependent approach to future monetary policy during its latest minutes. Earlier this month, the central bank held the cash rate at 3.60%, highlighting its reluctance to ease policy further amid persistently high inflation, robust consumer demand, and a renewed upswing in the housing market. Moreover, concerns about a weakening labor market were largely overstated, as employment surged while the unemployment rate fell in October. This prompted markets to significantly discount the likelihood of near-term policy easing, with only a 40% probability of a rate cut in May next year currently priced in. Nonetheless, the RBA acknowledged that certain scenarios could still warrant monetary easing, particularly if the labor market softens or if the broader economic recovery lags.