Australian Dollar Hits 3-Week Top

2026-07-15 01:18 By Joshua Ferrer 1 min. read

The Australian dollar strengthened to around $0.698, reaching more than a three-week high as softer-than-expected US inflation data weighed on the greenback and reduced expectations for further rate hikes by the Federal Reserve.

Investors also looked past renewed US-Iran tensions after President Donald Trump threatened additional strikes and reinstated a US blockade against Tehran, focusing instead on Washington's decision to abandon its proposed levy on cargoes transiting the Strait of Hormuz, which improved risk sentiment.

In Australia, expectations for further policy tightening remained subdued after the Reserve Bank’s three rate hikes since February.

Markets currently price only a 20% chance of a rate hike in August and around 60% odds by December.

Meanwhile, recent business surveys showed operating conditions remained soft in June and cost pressures continued to ease somewhat, while consumer confidence improved modestly in July, though will be challenged by rising fuel prices.



News Stream
Australian Dollar Hits 3-Week Top
The Australian dollar strengthened to around $0.698, reaching more than a three-week high as softer-than-expected US inflation data weighed on the greenback and reduced expectations for further rate hikes by the Federal Reserve. Investors also looked past renewed US-Iran tensions after President Donald Trump threatened additional strikes and reinstated a US blockade against Tehran, focusing instead on Washington's decision to abandon its proposed levy on cargoes transiting the Strait of Hormuz, which improved risk sentiment. In Australia, expectations for further policy tightening remained subdued after the Reserve Bank’s three rate hikes since February. Markets currently price only a 20% chance of a rate hike in August and around 60% odds by December. Meanwhile, recent business surveys showed operating conditions remained soft in June and cost pressures continued to ease somewhat, while consumer confidence improved modestly in July, though will be challenged by rising fuel prices.
2026-07-15
Australian Dollar Trades Near 3-Month Lows
The Australian dollar held below $0.692, trading near three-month lows as escalating Middle East tensions weighed on global risk sentiment. US President Trump reinstated a blockade on Iranian vessels transiting the Strait of Hormuz and called on countries benefiting from US efforts to secure the vital shipping route to share the costs. The move followed renewed hostilities between Washington and Tehran, with the US targeting Iran’s maritime capabilities while Tehran retaliated against US allies in the region. In Australia, RBA Assistant Governor Sarah Hunter said last week that the board will act as needed to return inflation to its target, warning some tightening may be required if the oil shock lifts inflation expectations. Still, markets suspect the central bank could be done hiking after three rate rises to 4.35%, with a further move this year seen at around 50%. Traders now await key employment and inflation data due later this month for fresh clues on the policy outlook.
2026-07-13
Australian Dollar Set for a Muted Week
The Australian dollar rose to around $0.695 but was on track to finish the week largely unchanged as investors monitored developments surrounding the Strait of Hormuz following renewed tensions in the Middle East. The safe-haven US dollar strengthened, while oil prices climbed after the US and Iran carried out military strikes in the Gulf earlier this week. However, both countries are now set to resume peace talks despite the recent escalation. Meanwhile, the International Monetary Fund lowered its 2026 growth forecast for Australia to 1.9% from 2.0% and warned inflation would remain elevated at around 4% this year. The Reserve Bank of Australia will meet in August and is expected to keep its cash rate unchanged at 4.35%, though markets still price in a roughly 60% chance of one final rate hike later this year, depending on the movement of oil prices. Traders also await key employment and inflation data due later this month, which could offer fresh clues on the policy outlook.
2026-07-10