Markets boost bets for February rate cut from RBA
Traders awaiting clues for pace of Fed cuts in 2025
Bank of Canada, SNB also decide policy this week

Dec 10 Reuters The Australian dollar fell towards a fourmonth low on Tuesday after the central bank softened its tone on the inflation outlook, raising expectations for an earlier interest rate cut.

The U.S. dollar was steady against its major rivals and edged to its strongest this month versus the yen as traders looked ahead to a U.S. inflation reading on Wednesday for further clues on the pace of Federal Reserve easing.

The Aussie fell 0.84 to 0.6387 as of 0820 GMT, and earlier dipped to 0.6380, in striking distance of Friday39;s low of 0.6373, a level that had not been seen since Aug. 5.

It rose 0.8 the day before after China pledged an appropriately loose monetary policy next year.

The New Zealand dollar dropped in sympathy, declining 0.75 to 0.5820.

The Reserve Bank of Australia held rates steady as widely expected, but noted the board had gained some confidence that inflation was heading back to target.

The statement omitted a previous line that the RBA was not ruling anything in or out, as well as policy needing to remain restrictive.

A full pricingin of a rate cut over the next few weeks would weigh further on the Australian dollar, said Volkmar Baur, forex strategist at Commerzbank, recalling that two labour market reports and the inflation figures for the fourth quarter will be published before the…