Australian Dollar Set for 1st Weekly Gain in Five
The Australian dollar edged up toward US$0.70, trading above multi-month lows as a sharp decline in US Treasury yields weighed on the greenback. A rally in US government bonds pulled yields back from a 24-year peak, offering some relief to global markets after weeks of heavy selling. The drop in yields helped the Aussie stay on track for a modest weekly advance, its first in five weeks. Attention is now turning to Australia's September employment report due next Thursday, following an unexpected rise in the unemployment rate to 4.6% in August. A further increase in joblessness would strengthen the case against another Reserve Bank of Australia rate hike after last month's increase lifted the cash rate to 4.60%. Markets are pricing in around a 30% chance of a hike in November, rising to 46% in December. The central bank's October 13 minutes will also be on focus, as well as the September-quarter CPI report later this month, with core inflation expected to remain elevated.
70, trading above multi-month lows as a sharp decline in US Treasury yields weighed on the greenback. A rally in US government bonds pulled yields back from a 24-year peak, offering some relief to global markets after weeks of heavy selling. The drop in yields helped the Aussie stay on track for a modest weekly advance, its first in five weeks. 6% in August.
60%. Markets are pricing in around a 30% chance of a hike in November, rising to 46% in December. The central bank's October 13 minutes will also be on focus, as well as the September-quarter CPI report later this month, with core inflation expected to remain elevated.