The Australian dollar is trading bearish early on Tuesday against the US dollar after the Reserve Bank of Australia (RBA) came out sounding more dovish about its interest rates and hinted that it could consider further easing in its monetary policy. At the time of writing, AUD/USD is trading at around 0.669.

AUD/USD lost around 0.3% of its value after the RBA held interest rates steady at 0.75% during its first monetary policy meeting of 2020. While this was mostly expected by markets, the central bank also hinted that it would consider easing its monetary policy even further based on the state of the Australian labor market.

In its meeting, the RBA also touched upon the prevalent coronavirus outbreak, stating that it was a “material risk” to China’s economy, and by extension, could also have an impact on the Australian economy which is closely tied to China due to trade. The RBA sounded optimistic about an uptick in mining and investment in infrastructure as well as recovery in the housing sector, which could support economic growth in Australia.