Australian Dollar Holds Ground

The Australian dollar held its recent gains near $0.70, after rebounding from a multi-month low hit on October 1, as weakness in the New Zealand dollar and euro supported the currency. The Australian dollar climbed to a six-day high against the kiwi and a nearly two-week high against the euro, with the New Zealand dollar weakening and the euro pressured by growing concerns over France’s fiscal position and political uncertainty. Domestically, consumer confidence weakened for a second straight month, with higher fuel and interest rates weighing on household sentiment. The Reserve Bank of Australia raised its cash rate to a 15-year high of 4.6% in September, its fourth hike this year, as it sought to curb inflationary pressures. Meanwhile, the stronger US dollar and elevated Treasury yields continued to limit the Australian dollar’s upside.