Aussie Dollar Stays Near 4-Year Peak
2026-04-20 01:30
By
Joshua Ferrer
1 min. read
The Australian dollar eased to around $0.71 but remained near its highest level since May 2022 as renewed hostilities in the Strait of Hormuz pushed oil prices higher, though traders still hoped for a resolution.
The ceasefire in the Iran war came under renewed strain after the US seized an Iranian cargo ship in the Gulf of Oman, prompting Tehran’s top military command to vow retaliation and reassert control over the Strait.
Still, Trump indicated there was still an opportunity for a deal ahead of another round of talks in Pakistan, even as Iran saw little prospect for agreement.
The prolonged conflict has triggered a historic energy supply shock, fueling inflation risks and expectations of further central bank rate hikes.
In Australia, a resilient labor market has already reinforced tightening bets, with markets pricing a 75% chance that the Reserve Bank will raise rates next month.
Investors now await upcoming flash figures for PMI this week for further clues on the economy’s health.