Australian Dollar Holds Near 2-Week Low

2026-06-04 02:41 By Joshua Ferrer 1 min. read

The Australian dollar held below $0.715, staying near a two-week low as renewed hostilities in the Middle East dampened risk sentiment, while upbeat domestic trade data offered support.

Australia's trade position returned to a surplus of AUD 1.79 billion in April from a deficit of AUD 1.02 billion in March, driven by a rebound in iron ore and coal exports, while import growth remained robust.

Earlier this week, softer Q1 GDP readings reinforced signs that the Reserve Bank’s three rate hikes this year are cooling demand and helping contain price pressures.

However, fresh attacks in the Middle East and near the crucial Strait of Hormuz have kept energy prices elevated, fueling inflation concerns.

Investors now await further clues on the policy outlook, with RBA Governor Michele Bullock set to appear before lawmakers later today and Deputy Governor Andrew Hauser scheduled to speak on Friday.

Markets have ruled out another rate hike this month, but remain evenly split for a move in August.



News Stream
Australian Dollar Holds Near 2-Week Low
The Australian dollar held below $0.715, staying near a two-week low as renewed hostilities in the Middle East dampened risk sentiment, while upbeat domestic trade data offered support. Australia's trade position returned to a surplus of AUD 1.79 billion in April from a deficit of AUD 1.02 billion in March, driven by a rebound in iron ore and coal exports, while import growth remained robust. Earlier this week, softer Q1 GDP readings reinforced signs that the Reserve Bank’s three rate hikes this year are cooling demand and helping contain price pressures. However, fresh attacks in the Middle East and near the crucial Strait of Hormuz have kept energy prices elevated, fueling inflation concerns. Investors now await further clues on the policy outlook, with RBA Governor Michele Bullock set to appear before lawmakers later today and Deputy Governor Andrew Hauser scheduled to speak on Friday. Markets have ruled out another rate hike this month, but remain evenly split for a move in August.
2026-06-04
Aussie Dollar Falls After Soft GDP Data
The Australian dollar fell to around $0.71, hovering below a recent four-year high as markets weighed the country’s latest GDP figures. The economy grew by just 0.3% in Q1, below expectations of 0.5% and down from 0.9% previously, while annual growth of 2.5% also missed forecasts. The softer readings reinforced signs that higher interest rates are cooling demand, and a key data point policymakers likely to assess ahead of the Reserve Bank’s June 15–16 meeting to determine whether current settings are sufficiently restrictive to bring inflation back to target. The central bank has already hiked rates three times this year in its effort to contain price pressures. This comes against a backdrop of geopolitical tensions linked to the US–Iran conflict, which have pushed up global energy costs and added to external inflation risks. Markets have largely ruled out another rate hike this month, but remain evenly split for a move in August and are nearly fully pricing a 4.60% peak by year-end.
2026-06-03
Australian Dollar Trades Sideways
The Australian dollar hovered around $0.71, trading in a sideways range as markets awaited developments from Middle East peace talks and a slate of key domestic data releases later in the week. Key releases, including the April trade balance, Q1 current account, and GDP figures, are expected to offer insight into the economy’s underlying momentum and help shape expectations for the Reserve Bank's policy outlook. The central bank has already hiked rates three times this year, and recent misses on employment and inflation have led investors to sharply scale back bets of another June rate increase, now priced at just around a 5% probability. Markets still price in 70% chance of one final move to 4.6% in the last quarter of the year. Meanwhile, global oil prices continued to rise and the safe haven US dollar strengthened, as a US-Iran ceasefire deal remains elusive, tensions in the Middle East stay elevated, and efforts to reopen the Strait of Hormuz have shown little progress.
2026-06-01