Australian Dollar Moves and Market Reactions
The Australian dollar fell more than 0.40% against the US dollar on Tuesday, taking AUD/USD to 0.6987 and below 0.7000, after the Reserve Bank of Australia lifted its cash rate to 4.60% but delivered guidance that markets read as mildly dovish. US risk sentiment was also softer, with Wall Street ending lower while Treasury yields stayed elevated: the US 5- and 10-year yields held above 5%, and the 20- and 30-year maturities were at 5.61% and 5.56%, respectively. The US Dollar Index (DXY) eased from above 101.50 to 101.25, yet it was still set for a 0.20% daily rise.
Federal Reserve Messaging and Economic Data
Federal Reserve messaging was mixed, as New York Fed President John Williams said there was no rush to raise rates, while Governor Michael Barr said policy needs recalibration and further hikes are likely; St. Louis Fed President Alberto Musalem described policy as accommodative after the September increase, and Chicago Fed President Austan Goolsbee warned on persistent inflation. In data, Conference Board consumer sentiment fell to 81.9 versus an 89.0 forecast, its lowest since early 2014, while August job openings slid to 7.079 million. Australia’s calendar next turns to August Trimmed Mean CPI, expected to hold at 3.6% YoY, while technical levels show clustered 50-, 100- and 200-day SMAs near 0.7093, with resistance also at 0.7198 and RSI (14) drifting towards 30.
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