The Australian dollar traded at US$0.7007 at 4:13 a.m. ET (09:13 UTC) Wednesday, up 0.54% over the previous 24 hours, after an earlier reading of US$0.6959 at 10 p.m. ET Tuesday (03:00 UTC Wednesday), according to Kinzan market data. An earlier FXStreet report put AUD/USD near US$0.6977 at 12:54 a.m. ET (05:54 GMT), underscoring how quickly the pair moved during the session.
The Associated Press and Reuters reported that Democrats had won control of both chambers of Congress in Tuesday’s midterm elections. Market readings were mixed: AP reported S&P 500 futures up 0.2% at 11:13 p.m. ET Tuesday (04:13 UTC Wednesday), while FXStreet later reported the futures 0.6% lower near 7,530. FXStreet attributed the Australian dollar’s early rebound to improving risk appetite, but the snapshots do not establish that as the move’s cause.
The RBA raised its cash-rate target by 25 basis points to 4.85% at its Tuesday, Nov. 3 meeting, effective Wednesday, Nov. 4. The central bank said inflation remained broad-based and that further tightening in financial conditions was warranted. Governor Michele Bullock said the Board was not signaling its next move and would assess incoming data.
