US Treasury yields recover to 5.25%, pressuring the Australian Dollar despite stronger-than-expected US jobless claims data.
The Australian Dollar declined against the US Dollar on Thursday, trading at 0.7114, down 0.14%. The retreat followed a rebound in US Treasury yields, which erased earlier gains after the US Treasury announced a bond buyback program targeting long-end yields.
US 30-year yields fell initially but recovered to 5.25%, while the US Dollar Index (DXY) rose 0.07% to 99.83. US Initial Jobless Claims for the week ending August 15 came in at 206K, below forecasts and the prior week’s print. Australian PMIs remained steady at 52 in August, matching July’s reading.
The US Treasury indicated plans to increase buyback operations beyond $4 billion, though yields continued to climb. Market focus remains on US fiscal policy and geopolitical tensions, including US assertions of control over the Strait of Hormuz.