Australian Dollar Underperforms as RBA Rate Hike Fears Wane

The Australian Dollar is under pressure in the European session on Tuesday, weakening against a basket of major currencies. The move comes as market expectations for additional rate hikes by the Reserve Bank of Australia fade, reducing the yield advantage of AUD-denominated assets.

Against the US Dollar, the Aussie is clinging to a marginal 0.15% gain, but the broader tone remains soft. Traders are now pricing in a lower probability of further tightening by the RBA, which has weighed on the currency's appeal.