Australian Dollar Remains Firm

2026-08-06 02:27 By Joshua Ferrer 1 min. read

The Australian dollar held above $0.705, staying near a seven-week high, supported by improving global risk appetite and upbeat domestic trade data.

Australia’s balance on goods trade unexpectedly swung to a surplus of A$ 1.9 billion in June from a revised deficit of A$ 2.4 billion in May, as exports of gold and iron rebounded sharply, while imports flattened after a strong run.

Attention now turns to the Reserve Bank of Australia’s monetary policy meeting next week, where markets are pricing in virtually no chance of a rate hike after three increases this year, but a hike in November is still about 60% priced in.

Elsewhere, an agreement announced by Iran and Oman to establish a shipping corridor through the Strait of Hormuz, strengthened hopes for improved energy supplies from the Middle East.

The partial reopening of the key waterway weighed on the greenback, as lower oil prices eased inflation pressures and reduced expectations for more aggressive rate hikes by the Federal Reserve.



News Stream
Australian Dollar Remains Firm
The Australian dollar held above $0.705, staying near a seven-week high, supported by improving global risk appetite and upbeat domestic trade data. Australia’s balance on goods trade unexpectedly swung to a surplus of A$ 1.9 billion in June from a revised deficit of A$ 2.4 billion in May, as exports of gold and iron rebounded sharply, while imports flattened after a strong run. Attention now turns to the Reserve Bank of Australia’s monetary policy meeting next week, where markets are pricing in virtually no chance of a rate hike after three increases this year, but a hike in November is still about 60% priced in. Elsewhere, an agreement announced by Iran and Oman to establish a shipping corridor through the Strait of Hormuz, strengthened hopes for improved energy supplies from the Middle East. The partial reopening of the key waterway weighed on the greenback, as lower oil prices eased inflation pressures and reduced expectations for more aggressive rate hikes by the Federal Reserve.
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