AUD/USD Tumbles as US Yields Rise and RBA Hawkish Bets Unwind

The AUD/USD has been hammered lower this week due to an unwind in hawkish RBA pricing following Tuesday's interest rate decision and softer economic data.

US front-end yields have risen historically large in September, with two-year and five-year yields rising around 54 basis points and 60 basis points respectively.

This has coincided with a strong dollar rally, which saw the greenback rise against eight of nine G10 currencies over the month.

The RBA's hawkish pricing unwound sharply after Governor Michele Bullock's press conference was not as hawkish as markets had anticipated, reducing expectations for a back-to-back rate increase in November.