Australian Dollar Rises to 10-Week High

2026-08-17 00:52 By Joshua Ferrer 1 min. read

The Australian dollar rose above $0.709, hitting a ten-week high as the Reserve Bank maintained a hawkish policy stance, while the US dollar weakened as Fed rate hike bets faded amid softer US economic data.

Recent figures pointed to subdued US inflation, while consumer sentiment and retail sales also weakened.

Markets now price roughly a one-in-three chance of a September rate hike, down from nearly 50% before the latest data.

In Australia, the RBA held its cash rate at 4.35% for a second consecutive meeting last week, but Governor Michele Bullock said rates might need to rise again as the Strait of Hormuz remained closed and productivity growth stayed weak.

RBA Assistant Governor Christopher Kent also said tighter monetary policy was working as designed, although its full effects on activity and inflation would take time.

Markets now price around a 70% chance of one final move to 4.60% by early next year.

Meanwhile, Australia’s July employment report will be in focus on Thursday.



News Stream
Australian Dollar Rises to 10-Week High
The Australian dollar rose above $0.709, hitting a ten-week high as the Reserve Bank maintained a hawkish policy stance, while the US dollar weakened as Fed rate hike bets faded amid softer US economic data. Recent figures pointed to subdued US inflation, while consumer sentiment and retail sales also weakened. Markets now price roughly a one-in-three chance of a September rate hike, down from nearly 50% before the latest data. In Australia, the RBA held its cash rate at 4.35% for a second consecutive meeting last week, but Governor Michele Bullock said rates might need to rise again as the Strait of Hormuz remained closed and productivity growth stayed weak. RBA Assistant Governor Christopher Kent also said tighter monetary policy was working as designed, although its full effects on activity and inflation would take time. Markets now price around a 70% chance of one final move to 4.60% by early next year. Meanwhile, Australia’s July employment report will be in focus on Thursday.
2026-08-17
Australian Dollar Holds Firm
The Australian dollar held above $0.705, staying near multi-week highs as the Reserve Bank’s latest remarks reinforced a restrictive policy stance. RBA Assistant Governor Christopher Kent said earlier rate increases were working as intended, with tighter monetary conditions weighing on consumer spending and slowing broader economic activity. He noted that housing credit growth had slowed, with a noticeable decline in new home lending, and said financial conditions overall remained somewhat restrictive. The central bank kept its cash rate at 4.35% this week after raising it by 75 basis points since February. However, Governor Michele Bullock said policymakers remained concerned that inflation may not cool as hoped and were prepared to raise rates again if needed. Markets priced around a 54% chance of a hike to 4.60% by December, likely marking the end of the tightening cycle. Attention now turns to Governor Michele Bullock, who is due to testify before parliament on Friday.
2026-08-13
Australian Dollar Steady as RBA Holds Rates
The Australian dollar held above $0.705, staying near an eight-week high after the Reserve Bank of Australia kept its cash rate unchanged at 4.35% for a second consecutive meeting, as widely expected. The unanimous decision came as the central bank said the economy was slowing as expected under tighter financial conditions, while keeping the option of another rate hike if upside inflation risks materialize. Markets had also expected rates to remain unchanged after second-quarter inflation came in below forecasts and the housing market weakened more than policymakers had anticipated. The RBA has already raised rates three times this year, as stubborn inflation and higher energy costs continued to weigh on the outlook. Markets now price around a 40% chance of another hike this year, down from 50% before the decision. Attention now turns to Governor Michele Bullock, who is due to testify before parliament on Friday, while Assistant Governor Chris Kent is scheduled on Thursday.
2026-08-11