AUD Reverses Gains Amid Middle East Uncertainty
The Australian Dollar (AUD) reversed its course against the US Dollar on Tuesday due to ongoing uncertainty in the Middle East, which tends to increase energy prices and raise the likelihood of monetary policy tightening by major central banks. The AUD/USD traded at 0.7080 after reaching a high of 0.7119.
US housing data failed to sustain Aussie gains as Housing Starts fell 12.4% MoM from 1.415 million in June to 1.239 million in July, due to higher mortgage rates and elevated prices. The Fed revealed that Industrial Production slowed from the expected 0.3% to 0.2% MoM.
Australia's Wage Price Index for the second quarter is forecast at 0.8%, unchanged from the previous print. Moody’s rating agency affirmed Australia’s creditworthiness at Aaa, maintaining a stable outlook, but noted weak productivity and high debt as key challenges.