Australian Dollar Rises to 1-Month High

2026-07-21 01:41 By Joshua Ferrer 1 min. read

The Australian dollar rose to around $0.70, hitting more than a four-week high as the ongoing US-Iran conflict raised the risk of energy-driven inflation, fueling expectations that the Reserve Bank of Australia could deliver another interest rate hike.

US attacks on Iran entered a tenth consecutive day, while Iran-backed Houthi militants also announced a maritime embargo against Saudi Arabia, raising fears of broader disruptions to global energy supplies.

The resulting surge in oil prices reinforced expectations that the Reserve Bank of Australia could tighten policy further after raising the cash rate three times to 4.35%, with markets pricing an 80% chance of another increase by December.

Investors are also awaiting Australia's June employment report on Thursday, with forecasts pointing to a 15,000 rise in employment and an unchanged 4.4% unemployment rate.

A weaker-than-expected labor market reading could prompt traders to scale back expectations for further policy tightening.



News Stream
Australian Dollar Hits 4-week High
AUDUSD increased to 0.70, the highest since June 2026. Over the past 4 weeks, Australian Dollar US Dollar gained 0.27%, and in the last 12 months, it increased 7.14%.
2026-07-21
Australian Dollar Rises to 1-Month High
The Australian dollar rose to around $0.70, hitting more than a four-week high as the ongoing US-Iran conflict raised the risk of energy-driven inflation, fueling expectations that the Reserve Bank of Australia could deliver another interest rate hike. US attacks on Iran entered a tenth consecutive day, while Iran-backed Houthi militants also announced a maritime embargo against Saudi Arabia, raising fears of broader disruptions to global energy supplies. The resulting surge in oil prices reinforced expectations that the Reserve Bank of Australia could tighten policy further after raising the cash rate three times to 4.35%, with markets pricing an 80% chance of another increase by December. Investors are also awaiting Australia's June employment report on Thursday, with forecasts pointing to a 15,000 rise in employment and an unchanged 4.4% unemployment rate. A weaker-than-expected labor market reading could prompt traders to scale back expectations for further policy tightening.
2026-07-21
Australian Dollar Holds Losses
The Australian dollar held its recent decline to around $0.698, pulling back from a recent three-week high as the escalating US-Iran conflict weighed on risk assets. The safe-haven US dollar strengthened, while oil prices climbed after hostilities expanded beyond military targets to critical infrastructures. Shipping through the Strait of Hormuz has also largely come to a halt, with the US enforcing a naval blockade on Iranian ports and Iran targeting vessels, raising fears that disruptions to energy supplies could reignite global inflation and complicate the policy outlook for major central banks. In Australia, expectations for further policy tightening remained subdued, though will be challenged by rising fuel prices. Markets assign about a 70% chance of one final increase by December, while some investors expect the RBA to begin cutting rates next year. Upcoming key employment data and flash PMI surveys later this week will offer further clues on the country’s economic health.
2026-07-20