The Australian dollar fell to around $0.70 on the first trading day of November, extending losses from the previous week as investors prepared for Tuesday’s Reserve Bank of Australia decision. The RBA is expected to raise its cash rate by 25 basis points to 4.85%, a near two-decade high and its fifth increase this year, as policymakers prioritize containing inflation. Headline inflation reached 3.9% year-on-year in the third quarter, while underlying inflation was 3.7%, both above the RBA’s 2–3% target range. Governor Michele Bullock said the labor market was "a little tighter" than anticipated, even as unemployment held at a five-year high of 4.7% in September. Australia’s Melbourne Institute Monthly Inflation Gauge rose 0.5% month-on-month in October 2026, up from 0.3% in September and marking its fourth consecutive monthly increase. Australian stocks fell 26 points, or 0.3%, to 8,883 in early Monday trading, led lower by technology, non-energy minerals and healthcare shares. September building-permit data limited losses, while China’s official manufacturing activity unexpectedly declined in October, partly reflecting the Golden Week break. U.S. stock futures rose ahead of corporate earnings, jobs data and the midterm elections; BHP Group and Rio Tinto declined, while the four major banks gained between 0.2% and 1.6%.