The dollar traded close to a one-month low Tuesday as U.S. midterm elections put control of Congress in play and two reports on factory orders and job openings approached.
Reuters recorded the dollar index at 101.81 in an early market report. FXStreet placed it above 101.70 in an update at 2:23 a.m. ET (07:23 UTC), describing trading as sideways after the index fell to around 101.40 on Monday. The readings were taken at different times.
Every seat in the House of Representatives and about one-third of Senate seats are on the ballot. The results will decide which party holds a majority in each chamber for the next two years. Midterm elections occur halfway through a presidential term.
Australia’s central bank also tightened policy Tuesday. The Reserve Bank of Australia (RBA) raised its cash-rate target by 25 basis points, from 4.60% to 4.85%. Six board members supported the increase; three voted to hold the rate.
Reuters reported that the Australian dollar fell as much as 0.35% after the decision, reaching $0.6974 against the U.S. dollar.
The RBA expects inflation to remain above 3% for the coming year and to return to the upper edge of its 2%-3% target range only in late 2027. It cited fuel and other commodity costs, domestic capacity pressures and prices for technology goods in its revised outlook. The bank expects higher rates, along with lower housing prices and turnover, to restrain household spending and housing investment.
The Institute for Supply Management’s October Manufacturing Purchasing Managers’ Index registered 55.5%, up from 54.5% in September, showing that U.S. factory activity expanded.
At 10 a.m. ET (15:00 UTC), the U.S. Census Bureau is scheduled to release its full September manufacturers’ orders report. The Bureau of Labor Statistics is due to publish the September Job Openings and Labor Turnover Survey at the same time.
