Australian Dollar Remains Resilient Near $0.70

The Australian dollar maintained its recent gains near $0.70, recovering from a multi-month low reached on October 1. This resilience was supported by weakness in the New Zealand dollar and the euro. The Aussie currency climbed to a six-day high against the kiwi and a nearly two-week high against the euro, as the New Zealand dollar weakened and the euro faced pressure due to concerns over France’s fiscal position and political uncertainty.

Domestically, consumer confidence declined for a second consecutive month, impacted by higher fuel prices and rising interest rates. In September, the Reserve Bank of Australia raised its cash rate to a 15-year high of 4.6%, marking its fourth hike this year in an effort to control inflationary pressures.

Despite these gains, the Australian dollar’s upside remains limited by a stronger US dollar and elevated Treasury yields.