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Australian dollar falls below 0.70 amid RBA dovish tilt
The Aussie dropped more than 0.4% versus the US dollar after the RBA lifted rates to 4.6%, while Fed commentary weighed on the dollar.
The Australian dollar slid more than 0.4% against the US dollar on Tuesday, dipping below the 0.7000 level after the Reserve Bank of Australia raised its cash rate to 4.60%. FXStreet attributed the move to a mild-dovish tilt from RBA Governor Bullock, which cleared the way for the pair to break under 0.70.
In the US, Wall Street ended the session with losses, while US Treasury yields stayed elevated. The US 5-year and 10-year yields were reported above 5%, with the 20-year and 30-year yields at 5.61% and 5.56%.
Currency moves also tracked Fed messaging, with New York Fed President John Williams saying the Fed is in no rush to raise rates, which weighed on the greenback. The US Dollar Index, which measures the dollar versus six other currencies, fell from about 101.50 to around 101.25, with a modest 0.20% gain expected by day end.
FXStreet also noted other Fed officials were more hawkish, including Michael Barr, who said policy needs recalibration and that further rate hikes are likely, alongside comments from other regional Fed presidents.
Latest closeDollar index 101.25 ▲0.3%