FX.co ★ Australian Dollar Holds Ground

The Australian dollar held near $0.70, preserving recent gains after rebounding from a multi-month low on October 1, as weakness in the New Zealand dollar and the euro lent support. The currency advanced to a six-day high against the kiwi and to its strongest level in nearly two weeks versus the euro, amid a softer New Zealand dollar and mounting pressure on the euro stemming from concerns over France’s fiscal outlook and heightened political uncertainty. On the domestic front, consumer confidence declined for a second consecutive month, as higher fuel costs and rising interest rates weighed on household sentiment. In September, the Reserve Bank of Australia lifted the cash rate to a 15-year high of 4.6%, marking its fourth increase this year in an effort to rein in inflationary pressures. However, the Australian dollar’s upside remained constrained by a stronger US dollar and elevated US Treasury yields.