Key facts
- US dollar index fell 0.2% to 101.78.
- Australian dollar hovered near a three-week high against the greenback.
- RBA Deputy Governor Andrew Hauser cited a materially worse inflation outlook.
- The RBA meets November 3 to decide on a potential rate hike.
The US dollar was under pressure on Wednesday, trading near a three-week low as falling Treasury yields and crude oil prices reduced its attractiveness. The Australian dollar edged higher, nearing a three-week peak against the greenback, after Reserve Bank of Australia Deputy Governor Andrew Hauser indicated that persistent inflation might necessitate further interest rate hikes. Oil prices eased after reaching a five-month high, influenced by diplomatic meetings and ongoing Houthi attacks. Wall Street experienced a solid session, with technology earnings season commencing. Upcoming central bank policy decisions from the US Federal Reserve, European Central Bank, and Bank of Japan are anticipated next week, with no expected rate changes. The Reserve Bank of New Zealand and Bank of Canada are also set to announce policy, with traders anticipating quarter-point hikes from both.