Aussie Extends Losing Streak

2026-03-30 03:08 By Joshua Ferrer 1 min. read

The Australian dollar weakened further to around $0.685, down for a seventh straight session to hit its lowest since January 23 as a sharp rise in energy prices amid ongoing Middle East tensions clouded the global economic outlook and pushed investors toward the safety of the US dollar.

The Aussie also fell 2.1% last week, its worst weekly performance since April, and is now on track for a roughly 3.8% monthly decline, the steepest since December 2024.

Oil prices continued to climb as the conflict in Iran entered its fifth week, with renewed attacks in the region increasing risks to global energy supply.

In response, Australia's Prime Minister Anthony Albanese announced a temporary cut to fuel taxes to help ease cost pressures, underscoring the broader impact of rising energy prices on the economy.

Focus now turns to the release of the RBA’s latest meeting minutes after a narrow vote to lift rates to 4.1%, as policymakers balance persistent inflation against a softening growth outlook.



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Aussie Extends Losing Streak
The Australian dollar weakened further to around $0.685, down for a seventh straight session to hit its lowest since January 23 as a sharp rise in energy prices amid ongoing Middle East tensions clouded the global economic outlook and pushed investors toward the safety of the US dollar. The Aussie also fell 2.1% last week, its worst weekly performance since April, and is now on track for a roughly 3.8% monthly decline, the steepest since December 2024. Oil prices continued to climb as the conflict in Iran entered its fifth week, with renewed attacks in the region increasing risks to global energy supply. In response, Australia's Prime Minister Anthony Albanese announced a temporary cut to fuel taxes to help ease cost pressures, underscoring the broader impact of rising energy prices on the economy. Focus now turns to the release of the RBA’s latest meeting minutes after a narrow vote to lift rates to 4.1%, as policymakers balance persistent inflation against a softening growth outlook.
2026-03-30
Australian Dollar Hits 2-Month Low
The Australian dollar weakened to around $0.685, hitting a more than two-month low as fears of a prolonged energy shock from the Middle East war clouded the global growth outlook and dampened demand for commodities. Support from relatively higher Australian interest rates is starting to fade, as markets increasingly expect further tightening across other major economies, narrowing the yield advantage. At the same time, a steep rise in petrol prices is expected to feed into domestic inflation while also squeezing household spending. Economists warn inflation could accelerate further, with headline CPI potentially rising toward 4.5% soon and even approaching 5% in Q2 if energy costs remain elevated. Earlier, RBA Assistant Governor Christopher Kent had already cautioned that a prolonged Gulf conflict could weigh on growth, even as they remain focused on keeping inflation expectations anchored. Markets currently imply a 68% chance of a May hike and see rates reaching 4.75% by year-end.
2026-03-27
Aussie Dollar Holds at 7-Week Low
The Australian dollar traded below $0.695, holding steady at a seven-week low as investors remained skeptical of a near-term Iran war de-escalation, while the RBA flagged rising inflation risks from global oil shock. The central bank warned that a prolonged conflict-driven supply shock could lift both inflation and long-term expectations, potentially requiring a more restrictive policy stance. Assistant Governor Chris Kent noted that such shocks tend to push prices higher while weighing on growth, limiting the ability of policy to fully offset the impact and instead shifting the focus toward preventing inflation from becoming entrenched. Meanwhile, uncertainty around the conflict continued to cloud sentiment, with conflicting signals from the US and Iran over potential negotiations. While Washington indicated efforts to advance talks and ease tensions, Tehran pushed back against ceasefire proposals, and increased US troop deployments in the region added to fears of further escalation.
2026-03-26