Australian Dollar Slips on RBA Remarks

2026-07-28 06:57 By Joshua Ferrer 1 min. read

The Australian dollar depreciated to below $0.698, easing from multi-week highs as investors reassessed the monetary policy outlook after fresh comments from the central bank's governor.

Reserve Bank of Australia Governor Michele Bullock said another interest rate hike may still be needed to bring inflation back to target, but stressed that the near-term outlook remains highly uncertain.

She noted that further moderation in domestic demand and labor market conditions would likely be needed before policymakers can judge whether previous tightening has been sufficient.

Her comments led markets to trim the probability of an August rate hike to around 20% from about 30%, though investors continue to expect the cash rate to reach 4.60% by year-end.

Focus now turns to Wednesday's second-quarter CPI report, with core inflation expected to accelerate to 3.7%, remaining above the RBA's 2%–3% target range.

Meanwhile, a pause in US-Iran hostilities provided support for the risk-sensitive Aussie.



News Stream
Australian Dollar Slips on RBA Remarks
The Australian dollar depreciated to below $0.698, easing from multi-week highs as investors reassessed the monetary policy outlook after fresh comments from the central bank's governor. Reserve Bank of Australia Governor Michele Bullock said another interest rate hike may still be needed to bring inflation back to target, but stressed that the near-term outlook remains highly uncertain. She noted that further moderation in domestic demand and labor market conditions would likely be needed before policymakers can judge whether previous tightening has been sufficient. Her comments led markets to trim the probability of an August rate hike to around 20% from about 30%, though investors continue to expect the cash rate to reach 4.60% by year-end. Focus now turns to Wednesday's second-quarter CPI report, with core inflation expected to accelerate to 3.7%, remaining above the RBA's 2%–3% target range. Meanwhile, a pause in US-Iran hostilities provided support for the risk-sensitive Aussie.
2026-07-28
Australian Dollar Holds Firm Ahead of CPI Data
The Australian dollar held around $0.70, staying 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.
2026-07-27
Aussie Set for 1st Weekly Loss in a Month
The Australian dollar traded below $0.698 and was on track for its first weekly loss in a month, pressured by a stronger US dollar as higher oil prices and renewed trade tensions fueled inflation concerns. Brent crude climbed above $100 per barrel after Houthi attacks on Saudi oil tankers in the Red Sea, while President Donald Trump threatened further action against Iran. Fresh US tariffs on goods from 60 trading partners added to inflation concerns, reinforcing expectations that interest rates could remain higher for longer. The stronger greenback erased gains the Aussie had made after domestic jobs data beat forecasts, while soaring oil prices also strengthened the case for another Reserve Bank of Australia rate hike. Markets now imply a 40% chance the RBA will lift the 4.35% cash rate in August, up from just 10% a few weeks ago, with a move by November almost fully priced. Investors now await second-quarter inflation data due next week for further clues on the policy outlook.
2026-07-24