Aussie Dollar Eases from 3-Week High

2026-04-13 01:35 By Joshua Ferrer 1 min. read

The Australian dollar weakened to below $0.703, easing from a three-week high as collapse of US–Iran peace talks and escalation around the Strait of Hormuz triggered a risk-off mood globally and strengthened the US dollar.

The move followed US plans to restrict shipping through the Strait after failed weekend talks with Iran, driving oil prices higher and intensifying global inflation risks.

The surge in energy costs reinforced expectations that central banks may delay rate cuts or even tighten further.

In Australia, the RBA has already raised rates twice this year to 4.10%, and markets expect another hike in May and see rates near 4.65% by year-end.

Caution now built ahead of labor market data this week after unemployment unexpectedly rose to a three-month high.

The Aussie’s year-long rally against the kiwi also showed signs of peaking after the RBNZ turned more hawkish.

Traders now look to RBA Deputy Governor Hauser’s remarks for signals on whether policy remains as hawkish as peers.



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Aussie Dollar Eases from 3-Week High
The Australian dollar weakened to below $0.703, easing from a three-week high as collapse of US–Iran peace talks and escalation around the Strait of Hormuz triggered a risk-off mood globally and strengthened the US dollar. The move followed US plans to restrict shipping through the Strait after failed weekend talks with Iran, driving oil prices higher and intensifying global inflation risks. The surge in energy costs reinforced expectations that central banks may delay rate cuts or even tighten further. In Australia, the RBA has already raised rates twice this year to 4.10%, and markets expect another hike in May and see rates near 4.65% by year-end. Caution now built ahead of labor market data this week after unemployment unexpectedly rose to a three-month high. The Aussie’s year-long rally against the kiwi also showed signs of peaking after the RBNZ turned more hawkish. Traders now look to RBA Deputy Governor Hauser’s remarks for signals on whether policy remains as hawkish as peers.
2026-04-13
Aussie Heads for Sharp Weekly Rise
The Australian dollar held above $0.707 on Friday, staying at a three-week high and on track for its strongest weekly gain since mid January as a two-week ceasefire in the Middle East conflict lifted global risk sentiment and weighed on the US dollar. Markets are now focused on upcoming diplomatic talks where US Vice President JD Vance is set to lead discussions in Islamabad this weekend. However, uncertainty lingered as Israeli strikes on Lebanon continued despite signals of potential direct negotiations, while disruptions in the Strait of Hormuz added concerns to global energy flows. President Trump also warned of possible escalation if ceasefire terms are not upheld, including concerns over Iran's attempts to impose charges on ships passing through the Strait. In Australia, the Reserve Bank has already raised rates twice this year to 4.10%, with inflation still stuck above their target range. Markets price a 60% chance of another hike in May and see rates near 4.65% by year-end.
2026-04-10
Australian Dollar Holds Gains
The Australian dollar held its recent gains to around $0.703, staying at a three-week high as investors assessed the durability of the Middle East ceasefire. The agreement, which includes Iran’s commitment to reopen the Strait of Hormuz, initially triggered a sharp unwind in US dollar safe-haven demand and lifted risk-sensitive currencies. However, optimism is fading at the margins, with reports indicating the 10-point framework has yet to secure full commitment from both sides, leaving the agreement viewed as fragile and incomplete. The conflict, now in its second month, has pushed energy prices higher and heightened inflation risks, reinforcing expectations that global central banks may keep policy tighter for longer. In Australia, the Reserve Bank has already lifted rates by 50 basis points to 4.10% amid persistently elevated inflation. Markets are now pricing in a roughly 55% chance of another hike in May, easing from 70% last week, but see rates at 4.61% by year-end.
2026-04-09