Australian Dollar appreciates despite market caution rising from Middle-East tensions

• The Australian Dollar gains ground as the RBA is widely expected to hold a hawkish stance regarding its policy outlook.
• The AiG Industry Index eased in September, rising 4.9 points to -18.6 from -23.5 prior reading.
• The US Dollar receives support from the market caution amid rising Middle-East tensions.

The Australian Dollar (AUD) retraces its recent losses from the previous session against the US Dollar (USD) on Wednesday. The AUD receives support from the hawkish Reserve Bank of Australia (RBA) regarding its interest rate trajectory and Australia’s largest trading partner China’s stimulus measures.

The AiG Industry Index slightly improved in September, rising 4.9 points to -18.6 from the previous reading of -23.5, though it still signals contraction for the 29th consecutive month. Meanwhile, the AiG Manufacturing PMI continued its decline, falling 2.8 points to -33.6 from -30.8 prior, marking the lowest level in trend terms since the series began.