Australian Dollar Set for 2nd Weekly Gain

2026-01-30 01:49 By Joshua Ferrer 1 min. read

The Australian dollar traded around $0.701, hovering near a three-year high and headed for a second weekly gain amid a struggling US dollar and mounting expectations of a domestic rate hike next week.

Markets are pricing in about a 70% chance of a 25bp increase in the cash rate, with a total of 50bps of tightening expected for the year following hotter-than-expected inflation data.

The Reserve Bank of Australia meets Tuesday, and all four major banks of the country expect a hike to 3.85%, though some uncertainty remains over whether the decision will be unanimous.

Economists forecast a hawkish tone but see the move as a single adjustment rather than a signal for ongoing tightening.

If the RBA hikes, it will join Japan as the only developed-world central bank raising rates, although the US Fed Reserve is still expected to cut twice this year.

The greenback remained under pressure and may face further downside amid President Trump’s fresh tariff threats and rising geopolitical tensions.



News Stream
Aussie Dollar Heads for Weekly Gain
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