The Australian dollar fell below $0.705, retreating from a recent eight-week high after the Reserve Bank of Australia kept its cash rate unchanged at 4.35% for a second consecutive meeting, as widely expected. In a unanimous decision, the central bank reiterated its focus on preventing elevated inflation from becoming embedded and said it could raise rates further if upside risks materialize. The RBA’s latest forecasts showed headline and underlying inflation reaching the 2.5% midpoint of its target only in early 2028, while unemployment is expected to edge higher. Still, traders trimmed expectations for another rate hike this year, while all four major Australian banks expect the RBA to remain on hold for some time before eventually shifting to easing. Attention now turns to RBA Governor Michele Bullock and her senior colleagues, who are due to testify before parliament on Friday, while Assistant Governor Chris Kent is scheduled to speak at a fireside chat on Thursday.