AUD Holds Steady as Hawkish Expectations Weigh on Rate Hike Bets

The Australian Dollar remains steady on Tuesday, holding within its recent range as markets weigh competing expectations for interest rate hikes from the Federal Reserve and the Reserve Bank of Australia.

The US Dollar received a boost from softer-than-expected US economic data, but this was short-lived as hawkish expectations for the Fed's September meeting took center stage. The US Dollar Index (DXY) is currently trading at 99.64, up 0.23% on the day.

Australia's upcoming GDP report, due on Wednesday, will be closely watched, particularly given the recent sticky inflation in the Australian economy and the Reserve Bank of Australia's decision to deliver three rate hikes earlier this year. The Aussie also draws support from upbeat Chinese data, with China's RatingDog Manufacturing PMI rising to 51.5 in August.