Dollar Index Edges Higher Amid Geopolitical Uncertainty
Financial markets are adopting a cautious stance on Tuesday amid mounting geopolitical uncertainty. The US dollar is trading stronger, with the dollar index extending its post-Fed gains toward key resistance at 101.80.
The European economic calendar features preliminary Consumer Confidence Index data for September. Central bankers' comments will also be closely watched.
US Treasury Secretary Scott Bessent said that Iranian airlines could effectively be shut out of international travel from September 23, while Iran's Islamic Revolutionary Guard Corps (IRGC) called on the US and Israel to accept the region's freedom.
The Reserve Bank of Australia (RBA) Governor Michele Bullock stated that supply shocks are difficult for monetary policy to deal with. The AUD lost about 0.2% on the day, trading near 0.7100.