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Australian dollar rises as US yields pull back

AUD/USD was around 0.6982, up 0.33%, while the 10-year US Treasury yield slipped below 5.20% after hitting 5.36% earlier this week.

Reported · Written up by our desk · Major Pairs

The Australian dollar edged higher on Tuesday versus the US dollar as a pullback in US Treasury yields weakened the greenback, according to FXStreet. At the time of writing, AUD/USD traded around 0.6982, up 0.33% on the day, after the US Dollar Index eased from 102.61 on Monday to about 102.25.

FXStreet also pointed to support for the Australian dollar from hawkish signals from the Reserve Bank of Australia (RBA). The benchmark 10-year US Treasury yield slipped below 5.20%, retreating from a 5.36% peak, its highest since 2002.

The outlet attributed some of the yield decline to modest moves in oil prices, a sell-off in AI-related stocks that boosted demand for government bonds, and short covering after the recent bond sell-off. FXStreet added that oil remained elevated due to supply risks tied to the US-Iran stalemate, keeping energy-related inflation concerns in focus and supporting expectations of tighter monetary policy.

FXStreet said traders broadly expect the Federal Reserve to deliver another interest rate hike before year-end, a stance that could affect the US rate outlook alongside the current moves in yields.

Latest closeDollar index 102.12 ▼0.1%

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