Australian Dollar flatlines as US yield ripples meet RBA hawks

The Australian Dollar held steady against the US Dollar on Wednesday, maintaining its flat position amid a quiet economic calendar. The US Treasury's announcement of a buyback for the September 10 auction contributed to the strengthening of the Greenback. The AUD/USD rate stands at 0.7219, unchanged. Earlier, the US Treasury disclosed plans to purchase up to $6 billion of securities maturing within the 10- to 20-year range, causing the US Dollar to rise.

However, this effect waned as the day progressed. US Treasury yields rose during the session, with the 10-year reaching 4.845% and the 30-year climbing to 5.293%. In the Middle East, tensions persisted near the Strait of Hormuz, with Iran continuing attacks on US military installations and warships while the US targeted Iranian oil tankers.

In the US, the ADP Employment Change 4-week average increased from 10K to 12K, prompting attention towards the Producer Price Index (PPI) on Thursday, expected to rise from 0% to 0.4% month-over-month and from 4.7% to 5.3% annually. The core figures are anticipated to grow from 0.2% to 0.3% month-over-month, with an annual projection of 4.6%.

At the Reserve Bank of Australia (RBA), Deputy Governor Hauser indicated that the upcoming meeting will center on determining whether to raise interest rates, following the RBA's recent 75-basis-point hike to 4.35% this year. Meanwhile, the Australian economic agenda includes Consumer Inflation Expectations for September, which, if surpassing August's 4.9%, may lead to a hawkish assessment of the RBA.

On the daily chart, AUD/USD is trading at 0.7220, extending its upward movement beyond the cluster of underlying trend support and the simple moving average triple, near 0.7057. The price remains above the horizontal floor at 0.7198, indicating a bullish near-term outlook, while the Relative Strength Index (14) is at 68, suggesting strong but increasingly pressured upward momentum as the pair nears higher structural barriers.

Resistance on the upside is at the upward trend-line break around 0.7354, with further resistance at 0.8597 and 0.9394. Support on the downside is found at 0.7198, preceding the moving average cluster near 0.7057 and the ascending trend-line levels at 0.7017 and 0.6900, with a deeper structural support at the prior downward trend-line break near 0.6385.