Traders also assessed weak factory output data from Japan and mixed business activity readings from China

Most Asian currencies were largely unchanged on Tuesday, while the Australian dollar gained after the Reserve Bank of Australia held interest rates steady as expected.

Traders also assessed weak factory output data from Japan and mixed business activity readings from China.

The US Dollar Index, which measures the dollar against a range of major currencies, edged 0.1 per cent higher. US Dollar Index Futures were largely unchanged as of 04:30 GMT.

The Reserve Bank of Australia (RBA) held its cash rate steady at 3.60 per cent on Tuesday, in line with market expectations, as officials opted to wait for clearer signs from inflation and labour market data.

The decision marks a pause after three cuts earlier in 2025 as the RBA balances upside inflation risks against signs of cooling in economic momentum. The central bank emphasised that it remains data-dependent.

In financial markets, the Australian dollar’s AUD/USD pair gained 0.5 per cent after the decision.

The yen’s USD/JPY pair traded flat on Tuesday, while the Singapore dollar’s USD/SGD edged up 0.1 per cent.

Data on Tuesday showed that Japan’s factory output dropped 1.2 per cent in August from the previous month, marking a second straight month of decline and underscoring continued industrial weakness.

A separate datapoint showed that Japan’s retail sales dropped at its fastest pace in four years, highlighting weak private consumption.

The won’s USD/KRW pair gained 0.2 per cent, while the Indian rupee’s USD/INR was largely unchanged.

The yuan’s onshore USD/CNY pair ticked 0.1 per cent higher, while the offshore pair USD/CNH was steady.

China’s official manufacturing activity declined for a sixth straight month in September, while service sector activity also weakened.