Aussie Dollar Sits at 4-Year Top
2026-04-17 01:05
By
Joshua Ferrer
1 min. read
The Australian dollar held above $0.71, sitting near its highest level since May 2022 and headed for its third straight weekly gain, supported by improving risk sentiment amid hopes for a potential de-escalation in the Middle East war.
US President Trump continued to signal progress toward a deal with Iran, though the key details remain unconfirmed and the Strait of Hormuz continues to face disruptions, keeping energy prices volatile.
Still, the Aussie has rebounded sharply amid the optimism, up over 5% from late-March lows triggered by the geopolitical tensions.
Meanwhile, Australia’s labor market remained resilient in March, reinforcing bets that the Reserve Bank may continue tightening policy.
Markets currently price in a 70% odds of a third consecutive rate hike in May, with upcoming Q1 inflation data seen as critical for the outlook.
Adding support, solid first-quarter growth in China, driven by exports and policy support, has bolstered demand prospects for Australian commodities.