Australian Dollar Climbs Despite Rising US Yields

The Australian Dollar (AUD) has shown resilience against the US Dollar (USD), rising 0.37% to 0.6972 over two consecutive sessions. This gain occurred despite higher US Treasury yields, which typically strengthen the USD against other currencies. Wall Street's gains, driven by tech stocks, helped offset the impact of rising yields on the AUD/USD pair.

In the US, the ISM Services PMI for September fell slightly to 54.9 from 55.4, below expectations, though input costs surged, reigniting inflation concerns. The economic calendar ahead includes the Fed's meeting minutes on October 7, Initial Jobless Claims on October 8, and the University of Michigan Consumer Sentiment on October 13.

In Australia, the economic focus is on the AIG Industry Index for August and October's Consumer Inflation Expectations, released on October 7. Despite market expectations that the Reserve Bank of Australia (RBA) will keep rates unchanged until May 2027, RBA Governor Bullock suggested that three rate hikes could help bring inflation closer to the central bank's target.

Technically, the AUD/USD pair remains in a bearish near-term bias, trading below key resistance levels around 0.7086-0.7090. The Relative Strength Index (14) at 34.5 indicates that selling pressure may be easing, though downside momentum persists.