AUD Holds Steady as Fed Hawks Meet RBA Hike Bets
The Australian Dollar has held firm against the US Dollar at the start of the week, trading near 0.7119 due to ongoing positive risk appetite. This sentiment is despite Fed officials turning more hawkish than expected ahead of the Trump-Xi summit in the US later this week.
Last week's Federal Reserve decision saw interest rates rise to 3.75%-4%, with Fed Chair Warsh stating that they are removing a dose of 'accommodation.' This move led to soaring US Treasury yields as the dot plot revealed at least one more rate hike is expected.
The market's tone has also improved due to President Trump's openness to meeting Iranian President Pezeshkian at the UN General Assembly. However, this news weighed on Oil prices, with WTI edging lower by over 3.60%.