AUD Rides Thin-Trading Lift as Fed Rate Hike Looms

The Australian Dollar experienced a fourth consecutive day of gains against the US Dollar, rising by 0.22% to trade at 0.7218.

This increase occurred despite thin trading volumes due to the Labour Day holiday in the US.

Market sentiment remains mixed following Monday's session, with European equity markets reflecting this uncertainty.

The US-Iran conflict has escalated, and a potential deal between Iran and Oman over the Strait of Hormuz is nearing completion, raising questions about how the US would respond.

A strong jobs data report from the US last week has set the stage for a rate hike by the Federal Reserve, with Fed Chair Warsh stating that the labour market is 'consistent with full employment'.

In Australia, key economic indicators will be released on Tuesday, including the Westpac Consumer Confidence index and statements from Reserve Bank of Australia officials.