Australian Dollar Trades Near Multi-Month Lows
The Australian dollar hovered below $0.70, trading near multi-month lows as a stronger US dollar and elevated Treasury yields continued to weigh on the currency. After posting its fourth consecutive weekly decline last week, the Aussie remained under pressure despite the Reserve Bank of Australia raising its cash rate to a 15-year high of 4.6% in September, as August inflation came below estimates, reducing bets on another rate increase in November. Meanwhile, the US dollar has remained firm, supported by elevated Treasury yields, which have enhanced the appeal of US assets, while a broad global selloff in government bonds has also fueled safe-haven demand for the greenback. A weaker-than-expected US jobs report provided some relief for the Aussie, as markets largely priced out the prospect of another Federal Reserve interest rate hike this month. Elsewhere, investors continued to monitor escalating Middle East tensions and the resulting inflation risks from higher oil prices.
70, trading near multi-month lows as a stronger US dollar and elevated Treasury yields continued to weigh on the currency. 6% in September, as August inflation came below estimates, reducing bets on another rate increase in November. Meanwhile, the US dollar has remained firm, supported by elevated Treasury yields, which have enhanced the appeal of US assets, while a broad global selloff in government bonds has also fueled safe-haven demand for the greenback. A weaker-than-expected US jobs report provided some relief for the Aussie, as markets largely priced out the prospect of another Federal Reserve interest rate hike this month.
Elsewhere, investors continued to monitor escalating Middle East tensions and the resulting inflation risks from higher oil prices.