On Tuesday, the Australian dollar recorded a two-week low against the Canadian dollar after the RBA held the cash rate at a 12-year high at its March meeting..35%, in line with market expectations。

The policy decision comes amid signs that Australian growth has slowed after a 425 basis point hike over the past two years.。

The country's inflation continues to decelerate, commodity prices are moderately falling, and the cost of services remains high.。The RBA says they need to ensure inflation moves towards the 2-3 per cent target range in 2025 and towards the midpoint of that range in 2026。

Central Bank Plays Down Its Tightening Tendency。In a statement, the RBA said: "The path of interest rates that best ensures inflation returns to target within a reasonable time remains uncertain and the Committee does not rule out any possibility.。Earlier, the RBA had said it "cannot rule out further rate hikes."。

IG analyst Tony Sycamore said: "We expect the RBA to lift its final tightening bias at the June board meeting and then cut interest rates by 25 basis points in August and November, bringing the year-end rate down to 3.85%。"

Meanwhile, in terms of macro data, Canadian dollar traders are now turning their attention to Canada's February consumer price index (CPI) data for more clues about the Bank of Canada's future interest rate movements.。

According to market consensus expectations, Canada's annual headline consumer inflation rate in February is likely to rise from 2 in January..9% to 3.1% - the lowest level since June 2023。

Earlier this month, the Bank of Canada left its overnight interest rate target unchanged at 5% and pledged to continue regulating its balance sheet as policymakers remained concerned about risks to the inflation outlook.。

As of 7: 49 a.m. Tuesday, the Australian dollar was down 0 against the Canadian dollar..41%, reported 0.8841。