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AUD/USD holds near 0.722 as US dollar lifts on Treasury buyback
The US Treasury said it will buy up to $6 billion of 10- to 20-year securities for the September 10 auction, supporting the greenback even as the initial move faded.
The Australian dollar was little changed against the US dollar on Wednesday, with AUD/USD trading around 0.7219, as a light US data calendar left market attention on US rates and the greenback. FXStreet reports that the US Treasury announcement of a buyback for the September 10 auction boosted the dollar, with the Treasury stating it would buy up to $6 billion of outstanding securities in the 10- to 20-year maturity range. The report notes that US Treasury yields ended higher, with the 10-year yield at 4.845% and the 30-year yield at 5.293%.
The broader move in the greenback later faded as the US session progressed, and the article points to continued focus on upcoming US inflation data. It says markets are looking ahead to Thursday’s Producer Price Index, where the expected ranges include a rise to 0.4% month over month and 5.3% year over year.
In Australia, attention also centered on the Reserve Bank of Australia as RBA Deputy Governor Hauser said debate at the next meeting will focus on whether to raise interest rates following the central bank’s 75-basis-point hike to 4.35% this year. FXStreet adds that if Australian Consumer Inflation Expectations for September come in above August’s 4.9%, it could lead to a more hawkish repricing of the RBA.