Forex
AUD Weakens Against USD as US Treasury Boosts Bond Buybacks
The Australian Dollar (AUD) has weakened against the US Dollar (USD), falling by 0.73% to $0.7162, following announcements from the US Treasury that they will be tripling their long-term bond buybacks to $6 billion.
This move has driven up US Treasury yields and supported the strength of the USD, which in turn has put downward pressure on the AUD.
Market expectations remain for a potential Reserve Bank of Australia (RBA) interest rate increase due to ongoing domestic inflation and stable economic growth, but this has not been enough to offset the current trend in favor of the USD.