Australian Dollar Rangebound

2026-04-23 00:41 By Joshua Ferrer 1 min. read

The Australian dollar held around $0.71, moving in a tight range near four-year highs as investors monitored developments in the Middle East war, while a recovery in domestic PMI data provided support.

Preliminary business surveys pointed to a modest rebound in activity, with manufacturing returning to expansion and services recovering after the sharp weakness seen in March, helping lift the composite gauge back above the growth threshold.

The data suggested domestic demand remained resilient despite firms continuing to report disruptions tied to geopolitical tensions.

Diplomatic efforts between the US and Iran showed limited progress and the Strait of Hormuz remained largely shut to international shipping.

Reports of attacks on commercial vessels and the continuation of US pressure on Iranian ports kept supply concerns elevated.

President Trump said the truce could remain in place while awaiting a revised Iranian proposal, though Tehran signaled no immediate intention to resume talks.



News Stream
Australian Dollar Rangebound
The Australian dollar held around $0.71, moving in a tight range near four-year highs as investors monitored developments in the Middle East war, while a recovery in domestic PMI data provided support. Preliminary business surveys pointed to a modest rebound in activity, with manufacturing returning to expansion and services recovering after the sharp weakness seen in March, helping lift the composite gauge back above the growth threshold. The data suggested domestic demand remained resilient despite firms continuing to report disruptions tied to geopolitical tensions. Diplomatic efforts between the US and Iran showed limited progress and the Strait of Hormuz remained largely shut to international shipping. Reports of attacks on commercial vessels and the continuation of US pressure on Iranian ports kept supply concerns elevated. President Trump said the truce could remain in place while awaiting a revised Iranian proposal, though Tehran signaled no immediate intention to resume talks.
2026-04-23
Aussie Dollar Rises Toward 4-Year Top
The Australian dollar rose above $0.71, moving back toward four-year highs as markets weighed the collapse of plans for a second round of US–Iran peace talks. Reports indicated that Vice President JD Vance canceled a planned trip to Islamabad for negotiations after Iran said that it would not participate in the meeting. Tehran also indicated it would keep the Strait of Hormuz closed as long as US naval interceptions persist, while President Trump extended the current ceasefire. Domestically, focus remained on policy after RBA Deputy Governor Andrew Hauser reiterated the central bank’s commitment to anchoring inflation expectations. This reinforced bets of further tightening, with markets now pricing a 77% chance of a rate hike next month and another move likely by September. Investors now look to upcoming PMI data for clearer signals on economic momentum. Meanwhile, a survey showed Australian firms expect the Aussie near $0.72 by year-end, while super funds see it around $0.71.
2026-04-22
Aussie Dollar Scales 4-Year Highs
The Australian dollar hovered to around $0.71, trading near four-year highs as markets continued to monitor developments in the Middle East conflict. 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 to threaten retaliation and reassert control over the Strait. Markets now focused on a second round of talks between the US and Iran as the current ceasefire nears its expiry. Iran is reportedly reconsidering participation, while President Trump signaled he may not extend the truce without a deal. 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.
2026-04-20