The Australian dollar edged higher to around $0.654 on Monday, snapping a three-session losing streak as investors awaited the Reserve Bank of Australia’s forthcoming monetary policy decision. The central bank is widely expected to leave interest rates unchanged following three cuts earlier this year, with stronger-than-anticipated inflation data tempering expectations of further monetary easing. Annual headline inflation jumped to 3.2% in Q3 from 2.1% in the previous quarter, while the trimmed mean measure increased to 3% from 2.7%. Meanwhile, Australia’s Monthly Inflation Gauge, compiled by the Melbourne Institute, rose 0.3% month-on-month in October 2025, slightly down from the 0.4% gain in September. Swaps indicate less than a 7% probability of a rate reduction, and market expectations for additional cuts in December and February have also been scaled back.