The Australian dollar has softened overnight falling back below the 0.7000-level against the US dollar. The pair is currently testing important levels at around the 0.7000-level where the 200-day moving average is also located at close to 0.7030. It has held above the 200-day moving average since November of last year. The Australian dollar has lost upward momentum this month amidst broad-based US dollar strength, and a correction lower for commodity prices. The price of iron ore has dropped by around 5% from the high set earlier this month. Similarly, the sharp ongoing rise in global bond yields is creating a more challenging backdrop for investor risk sentiment putting a dampener on the near-term performance of high beta G10 currencies such as the Australian dollar.The Australian dollar's position as one of the highest yielding G10 currencies was supported overnight by the RBA's decision to hike rates for the fourth time this year lifting the policy rate up to 4.60%. The decision to hike rates was justified by the RBA’s judgement that inflationary pressures are likely to persist for longer than previously expected. The RBA reiterated that they will "continue to do what it considers necessary to bring inflation sustainably back to target, including increasing the cash rate target further if needed". The board remains "focused on ensuring that high inflation does not become embedded”. The Australian rate market is expecting one more hike by the end of this year in either November or December. Governor Bullock did add though in the press conference that she hopes that four hikes are restrictive enough to slow inflation, but she doesn't know. She added that the RBA considered a 25hike at today's meeting or a pause. Those comments may put a dampener on expectations for further tightening and has weighed on the Aussie overnight.