Australian Dollar Rises Ahead of CPI Data

2026-07-27 01:14 By Joshua Ferrer 1 min. read

The Australian dollar rose to around $0.70, moving back near multi-week highs as investors await upcoming inflation figures this week for clues on the Reserve Bank’s policy outlook.

The second-quarter CPI report, due on Wednesday, is expected to show core inflation rose 0.9% in the quarter, lifting the annual rate to 3.7% from 3.5%.

The anticipated reading would remain well above the RBA's 2%–3% target range, reinforcing bets that policymakers will maintain a tightening bias.

Markets currently imply a 30% chance the RBA will lift the 4.35% cash rate in August, with a move by November almost fully priced.

Meanwhile, a pause in the US-Iran conflict supported risk appetite.

Oil prices retreated, while the US dollar weakened after Washington suspended its nearly two-week campaign of strikes against Iran, while Tehran said it had ended its retaliatory attacks.

Elsewhere, focus is on the upcoming monetary policy meeting by the US Federal Reserve, where rates are expected to be left on hold.



News Stream
Australian Dollar Rises Ahead of CPI Data
The Australian dollar rose to around $0.70, moving back near multi-week highs as investors await upcoming inflation figures this week for clues on the Reserve Bank’s policy outlook. The second-quarter CPI report, due on Wednesday, is expected to show core inflation rose 0.9% in the quarter, lifting the annual rate to 3.7% from 3.5%. The anticipated reading would remain well above the RBA's 2%–3% target range, reinforcing bets that policymakers will maintain a tightening bias. Markets currently imply a 30% chance the RBA will lift the 4.35% cash rate in August, with a move by November almost fully priced. Meanwhile, a pause in the US-Iran conflict supported risk appetite. Oil prices retreated, while the US dollar weakened after Washington suspended its nearly two-week campaign of strikes against Iran, while Tehran said it had ended its retaliatory attacks. Elsewhere, focus is on the upcoming monetary policy meeting by the US Federal Reserve, where rates are expected to be left on hold.
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