The Australian dollar broke above $0.72 to a four-month high as expectations of a near-term interest rate hike strengthened, while a weaker US dollar added support. The greenback came under pressure after Federal Reserve Governor Christopher Waller said he would support leaving rates unchanged if inflation pressures continued to ease, prompting investors to trim bets on a Fed rate hike later this month. Traders now await US jobs data due later today for fresh clues on the Fed’s policy outlook. In Australia, stronger GDP data in the second quarter reinforced expectations that the RBA could resume tightening after three rate hikes this year. Markets now price in a 58% chance of a hike this month, up from 49% before, while a November move is fully priced in. Swaps also imply 40 bps of tightening next year, equivalent to one and a half rate hikes. The hawkish outlook was further reinforced by renewed fighting in the Gulf, which pushed oil prices higher and fueled concerns over inflation.
The AUD/USD exchange rate rose to 0.7209 on September 4, 2026, up 0.12% from the previous session. Over the past month, the Australian Dollar has strengthened 2.13%, and is up by 10.06% over the last 12 months. Historically, the Australian Dollar reached an all time high of 1.49 in December of 1973. Australian Dollar - data, forecasts, historical chart - was last updated on September 4 of 2026.
The AUD/USD exchange rate rose to 0.7209 on September 4, 2026, up 0.12% from the previous session. Over the past month, the Australian Dollar has strengthened 2.13%, and is up by 10.06% over the last 12 months. The Australian Dollar is expected to trade at 0.72 by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 0.74 in 12 months time.