AUD Plunges as RBA Signals Potential End to Rate Hikes
The Australian dollar (AUD) fell by 0.51% against the US dollar on September 29, reaching a price of $0.69803. This decline was largely driven by market participants reacting to the Reserve Bank of Australia's (RBA) monetary policy announcement.
RBA Governor Michele Bullock's indication that additional tightening might not be necessary if inflation expectations remain anchored led traders to scale back bets on further rate hikes later in the year, stripping away a key driver of recent Aussie dollar strength.
The US dollar held firm due to resilient US Treasury yields and a cautious market mood. The RBA's forward guidance and post-meeting remarks focused heavily on slowing domestic growth and labor market softening, which dampened market risk appetite.