Aussie Dollar Approaches 2-Week Low

2026-03-25 01:39 By Joshua Ferrer 1 min. read

The Australian dollar edged down to around $0.70 on Wednesday, approaching a two-week low as caution persisted around US President Trump’s efforts to end the Iran conflict, while investors weighed softer domestic inflation figures.

Consumer prices were unchanged in February from the previous month, while annual inflation slowed to 3.7% from 3.8%, slightly below expectations.

Underlying inflation also came in weaker than forecast, suggesting some gradual cooling in core pressures.

However, inflation remains above the central bank’s 2–3% target range, keeping the policy outlook uncertain.

Markets see the odds of another rate hike in May as evenly balanced, while around 65 bps of additional tightening is still priced in for the rest of 2026.

Meanwhile, reports indicated the US was pursuing talks with Iran, including a proposed one-month ceasefire and a 15-point plan to resolve the conflict.

Still, the deployment of US ground troops to the region signaled that risks of escalation remain.



News Stream
Aussie Dollar Approaches 2-Week Low
The Australian dollar edged down to around $0.70 on Wednesday, approaching a two-week low as caution persisted around US President Trump’s efforts to end the Iran conflict, while investors weighed softer domestic inflation figures. Consumer prices were unchanged in February from the previous month, while annual inflation slowed to 3.7% from 3.8%, slightly below expectations. Underlying inflation also came in weaker than forecast, suggesting some gradual cooling in core pressures. However, inflation remains above the central bank’s 2–3% target range, keeping the policy outlook uncertain. Markets see the odds of another rate hike in May as evenly balanced, while around 65 bps of additional tightening is still priced in for the rest of 2026. Meanwhile, reports indicated the US was pursuing talks with Iran, including a proposed one-month ceasefire and a 15-point plan to resolve the conflict. Still, the deployment of US ground troops to the region signaled that risks of escalation remain.
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