AUD Sinks Amid Soaring US Yields Ahead of RBA Decision

The Australian Dollar has been falling for three consecutive days, down 0.37% against the US Dollar. This decline is largely due to elevated US yields, which rose as oil prices increased and inflation pressures grew.

The AUD/USD pair currently trades at 0.7012, near its 200-day Simple Moving Average (SMA) of 0.7021. The US Dollar continues to gain strength, boosted by Fed tightening bets and higher interest rates.

Despite a decline in Australian equities, RBA hike expectations offer support ahead of the Reserve Bank of Australia's monetary policy decision on September 29. Traders are pricing in a 93% chance of a 25-basis-point rate increase to 4.60%, according to Prime Terminal.