Australian Dollar || Receives Downward Pressure From Risk-Off Sentiment

Published: 23 October 2024
on channel: Financial Markets
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0

Australian Dollar || Receives Downward Pressure From Risk-Off Sentiment

The Australian Dollar (AUD) struggles to secure its previous session's gains on Wednesday. However, the AUD/USD pair faced pressure as the US Dollar (USD) strengthened with rising Treasury yields. Market risk aversion has increased due to the growing likelihood of Donald Trump winning the presidency, adding to the selling pressure on US Treasury bonds.

The downside for the AUD could be restrained due to hawkish sentiment around the Reserve Bank of Australia (RBA), bolstered by the positive employment data. Further support for the Aussie Dollar came from China's recent rate cuts, as China remains Australia's largest trading partner.

The US Dollar gains ground as recent signs of economic resilience and concerns about a potential resurgence of inflation have diminished the chances of a significant rate cut by the Federal Reserve in November.


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