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The Australian dollar is softer on global market weakness and Reserve Bank of Australia communications.

The Reserve Bank of Australia (RBA) left interest rates on hold on Tuesday over concerns domestic inflation has proven surprisingly resilient.

However, the Australian dollar weakened in the wake of the RBA decision, which tells us markets thought the RBA might not be as concerned about inflation as appears on first glance.

"The tone was less hawkish than we (and markets) expected, weighing on AUD/USD," says Samara Hammoud. strategist at Commonwealth Bank of Australia.

'Hawkish' typically describes a central bank that signals an inclination to raise interest rates. In the RBA’s case, the term can also apply when it opts to hold rates during a cutting cycle.

The

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