Reserve Bank of Australia Keeps Rates Steady, US Dollar Finds Support

According to Yahoo News, the Reserve Bank of Australia (RBA) has maintained its interest rates, providing some stability for the US dollar. The RBA's decision to keep rates on hold and adhere to a data-dependent outlook has been interpreted as dovish by markets. Despite the lack of surprises in the RBA's decision, the Australian dollar was sold during the Asia session, briefly falling below its 200-day moving average. The US dollar index is currently trading just above its 200-day moving average, finding support from doubts surrounding the feasibility of a 'soft landing' for the US economy. Futures markets are pricing in larger rate cuts by the Federal Reserve in 2023 than by any other major or emerging market central bank. However, doubts about the likelihood of a 125 basis point rate cut next year have slowed dollar selling. Upcoming US job openings data and non-farm payrolls figures may impact the dollar's performance. In Europe, final PMI readings and producer prices are expected, while Tokyo inflation data may provide the Bank of Japan with some leeway for a gradual exit from its ultra-easy policy. The yen remained steady at 147 to the dollar.