Australian Dollar remains tepid as US Dollar appreciates on bets of second term for Trump

• The Australian Dollar loses ground despite the hawkish RBA’s policy outlook.
• The AUD inches lower as the US Dollar appreciates amid less-dovish sentiment surrounding the Fed.
• CME FedWatch Tool suggests a 97% chance of a 25-basis-point rate cut by the Fed in November.

The Australian Dollar (AUD) edged lower against the US Dollar (USD) on Thursday. However, the AUD/USD pair saw some gains as the US Dollar (USD) softened slightly due to a modest decline in US Treasury yields. The Aussie Dollar could benefit from the hawkish tone surrounding the Reserve Bank of Australia (RBA).

RBA Deputy Governor Andrew Hauser highlighted, earlier this week, the country’s strong labor participation rate and stressed that, although the RBA relies on data, it is not overly fixated on it.