Aussie Flat to Start the Week

2026-06-22 01:12 By Joshua Ferrer 1 min. read

The Australian dollar held around $0.701, remaining near ten-week lows as renewed Middle East tensions weighed on risk sentiment, while markets grew cautious ahead of key domestic economic releases this week.

Investors will likely be focused on the release of CPI and jobs data for May, which will be pivotal for the Reserve Bank's next policy move.

After holding the cash rate this month, the central bank signaled that future moves will depend on incoming data as it assess the impact of its previous rate hikes on the economy.

Markets increasingly suspect that the tightening cycle is over with another hike seen as unlikely unless second-quarter inflation comes in significantly stronger than expected.

Traders also await upcoming flash surveys for PMI later today.

Meanwhile, uncertainty over US-Iran peace talks drove oil prices higher after President Trump threatened fresh strikes if Hezbollah continues its attacks on Israel, while Tehran announced a renewed closure of the Strait of Hormuz.



News Stream
Aussie Flat to Start the Week
The Australian dollar held around $0.701, remaining near ten-week lows as renewed Middle East tensions weighed on risk sentiment, while markets grew cautious ahead of key domestic economic releases this week. Investors will likely be focused on the release of CPI and jobs data for May, which will be pivotal for the Reserve Bank's next policy move. After holding the cash rate this month, the central bank signaled that future moves will depend on incoming data as it assess the impact of its previous rate hikes on the economy. Markets increasingly suspect that the tightening cycle is over with another hike seen as unlikely unless second-quarter inflation comes in significantly stronger than expected. Traders also await upcoming flash surveys for PMI later today. Meanwhile, uncertainty over US-Iran peace talks drove oil prices higher after President Trump threatened fresh strikes if Hezbollah continues its attacks on Israel, while Tehran announced a renewed closure of the Strait of Hormuz.
2026-06-22
Aussie Heads for Weekly Loss
The Australian dollar held below $0.705, near ten-week lows and headed for a modest weekly loss as a stronger US dollar and fading bets of additional RBA rate hikes weighed on the currency. Markets increasingly suspect the Reserve Bank of Australia has finished tightening after keeping the cash rate unchanged this week, with the odds of one more hike this year reduced to about 50%. While Governor Michele Bullock maintained that further tightening remains possible if inflation persists, markets expect it would take a sharply higher second-quarter inflation reading to trigger another move. Meanwhile, the US dollar index climbed to a one-year high after the Fed Reserve's hawkish hold prompted traders to increase bets on further rate hikes. Nearly half of policymakers projected at least one increase this year amid growing inflation concerns. Elsewhere, a US-Iran interim deal and the resumption of energy flows through the Strait of Hormuz provided some support for the risk sensitive AUD.
2026-06-19
Aussie Dollar Stays Near 2-Month Lows
The Australian dollar rose above $0.70, but remained near two-month lows as the US dollar jumped following the Federal Reserve’s interest rate decision. While the Fed left its policy rate unchanged, half of FOMC members expect a hike later this year amid growing inflation concerns. Meanwhile, new Fed Chair Kevin Warsh shifted away from forward guidance in his debut communication, emphasizing a more inflation-focused policy stance. In Australia, the Reserve Bank signaled further tightening after holding rates steady. Governor Michele Bullock emphasized that inflation remains too high and reiterated that further rate hikes cannot be ruled out. While markets increasingly suspect that the tightening cycle is over, the RBA’s hawkish tone has kept a roughly 50% odds of one final hike this year priced in. Elsewhere, US President Trump signed an interim agreement to end the war with Iran, although it remains uncertain whether Iran has already begun steps to fully reopen the Strait of Hormuz.
2026-06-18