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Australian dollar rises as US dollar slips on easing Treasury yields

AUD/USD was up 0.13% to about 0.6980, while the 10-year US Treasury yield eased to roughly 5.29% after dipping toward 5.25%.

Reported · Written up by our desk · Major Pairs

The Australian dollar strengthened against the US dollar on Tuesday, with AUD/USD up 0.13% to around 0.6980, according to FXStreet.

FXStreet said the gain came as easing US Treasury yields reduced the US dollar's appeal. The benchmark 10-year yield was trading near 5.29% after falling toward 5.25% earlier, though it remained close to Monday's peak around 5.349%.

FXStreet also pointed to elevated US yields tied to persistent inflation risks and concerns about government debt and fiscal sustainability, which has kept pressure on expectations that rates will stay high for longer.

On the Fed outlook, FXStreet said softer-than-expected US data last week lowered expectations the Federal Reserve would raise rates again at its October 27 to 28 meeting, citing weaker Nonfarm Payrolls and Personal Consumption Expenditures inflation data.

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