The Australian Dollar (AUD) trimmed its early losses on Tuesday after RBA Governor Michele Bullock adopted a cautious tone during her post-meeting remarks. The Reserve Bank of Australia (RBA) kept its Official Cash Rate (OCR) unchanged at 3.6% in November, with Bullock emphasizing that rate cuts were not discussed despite inflation remaining above target.

Recent data painted a mixed picture for Australia’s economy. Building Permits jumped 12% MoM in September, beating expectations, while ANZ Job Advertisements fell for the fourth straight month. The TD-MI Inflation Gauge rose 3.1% YoY, reflecting lingering price pressures that could keep the RBA cautious.

Meanwhile, the US Dollar (USD) strengthened as traders lowered expectations for a Fed rate cut in December, now seen at 65% probability, according to CME’s FedWatch Tool. Fed Chair Jerome Powell reiterated a “wait-and-see” stance, while the prolonged US government shutdown and renewed US-China trade tensions add uncertainty to market sentiment.

On the technical side, AUD/USD trades around 0.6530, consolidating within a rectangle pattern. The 0.6500 level acts as strong support, while a sustained move above 0.6600 could open the path toward 0.6700.