The Australian dollar hovered below $0.70, trading near multi‑month lows as a stronger US dollar and elevated US Treasury yields continued to weigh on the currency. Having logged a fourth straight weekly decline last week, the Aussie stayed under pressure even after the Reserve Bank of Australia lifted its cash rate in September to a 15‑year high of 4.6%. Softer‑than‑expected August inflation tempered expectations of another rate hike in November, limiting support for the currency.
By contrast, the US dollar remained firm, underpinned by higher Treasury yields that have bolstered the appeal of US assets. A broad global selloff in government bonds has further reinforced safe‑haven demand for the greenback. A weaker‑than‑anticipated US jobs report offered some respite for the Aussie, as markets largely discounted the likelihood of another Federal Reserve rate increase this month. At the same time, investors continued to track rising tensions in the Middle East and the associated inflation risks stemming from higher oil prices.
