Australian Dollar Gains Ground

The Australian dollar strengthened to above $0.71 on Monday, reaching a one-week high as global risk sentiment improved after the US and Iran moved closer to a deal. The proposed agreement would reopen the Strait of Hormuz, bring an end to the hostilities, unfreeze some Iranian assets, and pave the way for further negotiations aimed at limiting Tehran’s nuclear program. Still, President Trump said Washington would maintain its blockade of the Strait of Hormuz until an agreement is finalized and he wouldn’t “rush” into a deal. In Australia, expectations of further monetary tightening by the Reserve Bank weakened after a surprise rise in the jobless rate. The unemployment rate unexpectedly rose to 4.5% in April from 4.3% in March, the highest level in about four and a half years. The probability of a rate hike at the next meeting dropped to just 3%, from 13% following the release, according to financial market pricing provided by Westpac.

The Australian dollar depreciated to around $0.71 on Friday after a steady performance in the previous session, as a surprise rise in the unemployment rate dampened expectations for further interest-rate hikes. Australia’s seasonally adjusted unemployment rate edged up to 4.5% in April 2026, exceeding both March’s figure and market expectations of 4.3%, and marking the highest level since November 2021. Employment unexpectedly declined by 18,600 to 14.74 million, representing the first drop since November 2025. The weak labor market data prompted investors to scale back expectations that the Reserve Bank would raise the cash rate to 4.6% in June following three consecutive rate hikes. Meanwhile, consumer inflation expectations eased to 5.6% in May from April’s three-year high of 5.9%, although concerns over persistent price pressures remained amid rising oil prices linked to the Iran conflict. For the week, the currency is on track for a second consecutive weekly decline.

AUDUSD decreased to 0.71, the lowest since April 2026. Over the past 4 weeks, Australian Dollar US Dollar lost 1.06%, and in the last 12 months, it increased 10.56%.