The Australian Dollar is virtually unchanged against the US Dollar on Wednesday amid a light economic calendar, with the US Treasury's announcement of a buyback for the September 10 auction boosting the Greenback. The AUD/USD trades at 0.7219, flat.
AUD/USD stalls as higher yields and Hormuz risks offset RBA hawks
Earlier, the US Treasury released a statement in which it said it would buy up to $6 billion of outstanding securities set to mature in the 10- to 20-year tranche. This pushed the US Dollar higher, but that move faded as the North American session progressed.
US Treasury yields ended higher in the session. The 10-year hit 4.845%, up five basis points, while the 30-year used to calculate mortgage rates rose four and a half basis points, at 5.293%:
In the Middle East, hostilities continued near the Strait of Hormuz, as Tehran continues to launch several attacks on US military facilities and warships, while Washington targets Iranian Oil vessels.
Data in the US featured the ADP Employment Change 4-week average, which rose from 10K to 12K. Now eyes are set on the Producer Price Index (PPI) on Thursday, which is expected to rise from 0% to 0.4% MoM and from 4.7% to 5.3% annually. Core figures are foreseen to rise from 0.2% to 0.3% MoM, while for the twelve months to August, the number is projected to increase to 4.6%.
In Australia, the Reserve Bank of Australia (RBA) Deputy Governor Hauser said that at the next meeting, the debate will focus on whether to raise interest rates, following the RBA's 75-basis-point rate hike to 4.35% this year.
Ahead, the Aussie economic schedule will feature Consumer Inflation Expectations for September, which, if it comes in above August’s 4.9%, could spark a hawkish repricing of the RBA.
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