The Reserve Bank of Australia held its cash rate steady at 4.35% in an as expected decision today. The Bank pointed to: Underlying inflation remains too high Inflation is not expected to return sustainably to the midpoint of the target until 2026 The labour market remains tight, and demand for labour is strong. The Bank did lower its forecasts for growth and underlying inflation a touch, though not enough to signal any imminent rate cuts. As I said in the posts on the decision: Analysts were looking for a February rate cut going into this meeting while market pricing was around May. I don't think those expectations will hold in the face of today's policy statement from the Bank. Higher for longer. AUD/USD barely moved on the RBA news. Ahead of the Reserve Bank of Australia was the other focus for the session, China second services PMI for October. The private-sector services PMI notched up 22 consecutive months in expansion, accelerating to a three months high in October. There were some indications that Beijing's stimulus efforts were boosting business conditions. Major FX traded in limited ranges awaiting the week’s big event (no, not the Melbourne Cup horse race). Getting non-partisan views on the US election is a difficult task but, FWIW, pundits indicated a slowing momentum for Trump and an improving one for Harris. Most polls remain line ball. Yen weakened a little: