Australian Dollar Remains Firm

2026-03-13 02:10 By Joshua Ferrer 1 min. read

The Australian dollar held its recent decline to around $0.709 but remained firm near three-year highs and set for a sharp weekly gain, as prospects of higher interest rates at home offset intensifying global risk aversion.

Markets remained on edge as Iran stepped up attacks on oil and transport facilities across the Middle East, and the new Supreme Leader vowed to keep the Strait of Hormuz effectively closed.

As a result, oil prices climbed as the prolonged conflict threatened to curb energy supplies, stoking fears of a global economic downturn.

Still, the Aussie continued to benefit from wagers that the Reserve Bank would raise its cash rate by a quarter-point to 4.10% next week to contain inflation.

Domestic cost-of-living concerns from higher fuel prices pushed markets to price a 78% chance of a rate hike at the March 17 meeting, up from below 30% earlier in the week.

Another move is fully priced by August, with traders expecting about 60 basis points of total tightening this year.



News Stream
Australian Dollar Remains Firm
The Australian dollar held its recent decline to around $0.709 but remained firm near three-year highs and set for a sharp weekly gain, as prospects of higher interest rates at home offset intensifying global risk aversion. Markets remained on edge as Iran stepped up attacks on oil and transport facilities across the Middle East, and the new Supreme Leader vowed to keep the Strait of Hormuz effectively closed. As a result, oil prices climbed as the prolonged conflict threatened to curb energy supplies, stoking fears of a global economic downturn. Still, the Aussie continued to benefit from wagers that the Reserve Bank would raise its cash rate by a quarter-point to 4.10% next week to contain inflation. Domestic cost-of-living concerns from higher fuel prices pushed markets to price a 78% chance of a rate hike at the March 17 meeting, up from below 30% earlier in the week. Another move is fully priced by August, with traders expecting about 60 basis points of total tightening this year.
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