The Australian dollar held steady around $0.661, hovering two-week lows and headed for its first weekly decline in a month, as investors awaited the Reserve Bank’s December meeting minutes for clearer guidance on the policy outlook. The minutes, due next week, are expected to provide insight into the board’s discussions on potential future tightening and its inflation concerns. Views among economists remain mixed, with some anticipating a February rate hike, while others expect rates to stay on hold unless near-term inflation surprises prompt earlier action. The November CPI report is due January 7, with a more comprehensive December and fourth-quarter figures on January 28. A quarterly rise of 0.8% or more in trimmed mean inflation could prompt the RBA to hike rates at its February meeting. Markets wagered a 25% chance of a February move, rising to 40% from March and 70% for May. Elsewhere, a softer US inflation data and cooling labor market raised bets of further Fed rate cuts.
