The Australian dollar strengthened against other major currencies in the Asian session on Monday, after Australia central bank maintained its interest rate for the eighth straight session at a 13-year high, as underlying inflation remains too high.

The policy board of the Reserve Bank of Australia governed by Michele Bullock decided to hold the cash rate target at 4.35 percent. The bank had previously changed its rate in November 2023, when it was lifted by 25 basis points to the highest level since late 2011.

The interest rate paid on Exchange Settlement balances was kept unchanged at 4.25 percent.

The committee said it needs to remain vigilant to upside risks to inflation and is not ruling anything in or out.

"Policy will need to be sufficiently restrictive until the Board is confident that inflation is moving sustainably towards the target range," the bank said.

Data from Judo Bank showed that the services sector in Australia continued to expand in October, and at a faster rate, with a PMI score of 51.0. That's up from 50.5.

Following the announcement of the November monetary policy decision, the Reserve Bank of Australia (RBA) Governor Michele Bullock said at the press conference the need to maintain restrictive interest rates for the time being due to ongoing inflationary risks. Despite a tight labor market, wage growth is showing signs of easing.

Traders remained cautious and seemed reluctant to make significant moves ahead of the closely contested U.S. presidential election later in the day and the U.S. Fed's upcoming interest rate decision later this week.

The Fed is widely expected to lower interest rates by another 25 basis points, but traders will be looking to the accompanying statement for clues about the likelihood of future rate cuts.

Crude oil prices rose sharply, buoyed by OPEC's decision to delay plans to increase production, and on rising concerns about tensions in the Middle East. West Texas Intermediate crude oil futures for December closed up $1.98 or about 2.85% at $71.47 a barrel, extending gains to a fourth straight session.

In the Asian trading now, the Australian dollar rose to 1.6484 against the euro and 100.64 against the yen, from yesterday's closing quotes of 1.6518 and 100.16, respectively. If the aussie extends its uptrend, it is likely to find resistance around 1.61 against the euro and 102.00 against the yen.

Against the U.S., the Canada and the New Zealand dollars, the aussie advanced to 0.6599, 0.9171 and 1.1035 from Monday's closing quotes of 06584, 0.9152 and 1.1021, respectively. The aussie may test resistance around 0.69 against the greenback, 0.93 against the loonie and 1.11 against the kiwi. Looking ahead, S&P Global publishes final U.K. services Purchasing Managers' survey data for October in the European session. The final services PMI is seen at 51.8 in October, in line with flash estimate, down from 52.4 in September.

In the New York session, U.S. and Canada trade data for September and PMI reports for October, are slated for release.

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