The Australian dollar was steady around $0.69 on Wednesday after coming under pressure in the previous session as escalating conflict in the Middle East dampened risk appetite. In Australia, investors reacted to data showing business conditions in Australian industry improved slightly in September, but remained in contraction amid ongoing challenges.

Meanwhile, data earlier this week showed retail sales grew more than expected in August, reducing the chances of an early interest rate cut from the Reserve Bank of Australia.

Markets are barely pricing in the chance of an RBA rate cut in November, while odds for a move in December are currently around 71%. The Aussie also continues to benefit from stimulus measures by major trading partner China, which have boosted commodity prices and commodity-linked currencies. (ayu)

Source: Trading Economics