Australian Dollar appreciates as US Dollar remains subdued amid lower Treasury yields

• The Australian Dollar remains stronger after the release of Purchasing Managers Index data on Thursday.
• Australia’s Judo Bank Services PMI inched up to 50.6 in October, marking its ninth consecutive month of expansion.
• Fed Beige Book report indicated that economic activity was “little changed in nearly all Districts.”

The Australian Dollar (AUD) edges higher against the US Dollar (USD) after the release of the domestic Purchasing Managers Index (PMI) on Thursday. Additionally, the AUD/USD pair gained as the USD weakened slightly, driven by a modest dip in US Treasury yields. 2-year and 10-year yields on US Treasury bonds stand at 4.07% and 4.23%, respectively, at the time of writing.

The AUD could get further support from the prevailing hawkish sentiment surrounding the Reserve Bank of Australia (RBA), bolstered by the positive employment data. Earlier this week, RBA Deputy Governor Andrew Hauser noted that the labor participation rate is remarkably high and emphasized that while the RBA is data-dependent, it is not data-obsessed.