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Australian dollar slides as US dollar strengthens on Treasury yields
AUD/USD was around 0.6950 in European trade, after 10-year and 30-year Treasury yields moved near 5.32% and 5.71%, respectively.
The Australian dollar extended its losses for a second straight day versus the US dollar, with AUD/USD trading around 0.6950 during European hours on Thursday, according to FXStreet.
FXStreet said the US dollar gained support as Treasury yields climbed back toward multi-decade highs not seen since 2002, with 10-year and 30-year yields near 5.32% and 5.71%.
The outlet also pointed to a hawkish tone from the Federal Open Market Committee tied to persistent inflation risks, alongside Federal Reserve September meeting minutes showing unanimous support among all 19 policymakers for the recent rate hike and agreement by a majority that another increase may be needed before year end.
FXStreet added that safe-haven demand helped lift the Greenback as geopolitical tensions remain high over the risk of an escalation between the US and Iran, which could affect vital maritime shipping routes through the Strait of.