Australian Dollar Falls to 11-Week Low
The Australian dollar weakened to around $0.69, hitting an eleven-week low as the US dollar strengthened on surging Treasury yields, while investors trimmed bets on another near-term RBA rate hike. Markets reduced the odds of another RBA rate increase in November to 20% from 36% previously after August inflation came in slightly below forecasts. The next hike is now seen more likely in March rather than February. Australia's trade data also weighed on sentiment as the trade surplus narrowed to its smallest in three months. Meanwhile, the Aussie finished 3.1% lower last month, partly due to a broadly stronger US dollar and ongoing Middle East tensions. The dollar index climbed to an almost 18-month high despite reduced expectations of another Fed hike this month, as Treasury yields surged to multi-decade peaks on concerns over persistent energy-driven inflation. Oil prices remain elevated as the US and Iran make little progress in talks, despite signs of a recovery in Middle East flows.
69, hitting an eleven-week low as the US dollar strengthened on surging Treasury yields, while investors trimmed bets on another near-term RBA rate hike. Markets reduced the odds of another RBA rate increase in November to 20% from 36% previously after August inflation came in slightly below forecasts. The next hike is now seen more likely in March rather than February. Australia's trade data also weighed on sentiment as the trade surplus narrowed to its smallest in three months.
1% lower last month, partly due to a broadly stronger US dollar and ongoing Middle East tensions. The dollar index climbed to an almost 18-month high despite reduced expectations of another Fed hike this month, as Treasury yields surged to multi-decade peaks on concerns over persistent energy-driven inflation. Oil prices remain elevated as the US and Iran make little progress in talks, despite signs of a recovery in Middle East flows.