AUD Tumbles Amid Soaring US Yields and Fed Tightening Speculation

The Australian Dollar fell over 1% against the US Dollar on Wednesday as US Treasury yields soared, driven by investor confidence in further Federal Reserve tightening.

US 5- and 10-year T-note yields surpassed the 5% threshold, with the 5-year yield rising to 4.99% and the 10-year yield surging to 5.11%, its highest level since 2007.

This led to a gain in the US Dollar Index (DXY) of 0.57% to 101.25, as market sentiment soured amid rising global bond yields.

In the US, data revealed resilience in the economy, with the S&P Global Manufacturing PMI coming in at 57, above forecasts of 53.5, and the services index rising from 56.5 to 58.7, beating estimates of 56.