Aussie Slides as US Rates Hike Gap Narrows

The Australian Dollar has continued its downward trend due to a combination of factors. The Reserve Bank of Australia (RBA) raised interest rates three times earlier this year, with the current rate at 4.35%. However, despite having a higher interest rate compared to other major central banks, the Aussie is struggling. This is largely because it's seen as a bet on global growth and commodity demand, which has been affected by the rise in US interest rates.

On Wednesday, the Australian Dollar experienced its largest fall of the five-day streak, with some analysts attributing this to the Fed's projections for one more hike this year, taking interest rates to 4.1%. This narrows the gap between the RBA and the Fed's interest rates, making the Aussie less attractive.

RBA Governor Bullock is set to speak on Thursday at 23:30 GMT, which may provide some insight into future monetary policy decisions. The Australian Dollar has given back around 40% of its rally from early July to September, with resistance levels near 0.7100 and support levels just above 0.7050.