Australian Dollar Remains Firm

2026-08-19 03:23 By Joshua Ferrer 1 min. read

The Australian dollar fell below $0.71, but remained near a ten-week high as investors weighed the Reserve Bank of Australia's latest remarks and soft quarterly wages data.

Australian wages rose at a moderate pace for a fifth straight quarter in the June quarter, as annual growth in the private sector slowed to its lowest level in four years.

The softer private wage growth could ease some pressure on the RBA to tighten policy, although Deputy Governor Andrew Hauser warned that the central bank may need to raise rates again if upside inflation risks crystallize.

He highlighted the Middle East conflict, the global AI boom and weak productivity as key risks to inflation.

The RBA kept its cash rate at 4.35% last week after raising rates by 75 basis points since February to contain persistent price pressures.

Attention now turns to Thursday’s jobs report, with employment expected to rise by 15,000 in July after a strong 76,300 gain in June, while unemployment is forecast to remain at 4.4%.



News Stream
Australian Dollar Remains Firm
The Australian dollar fell below $0.71, but remained near a ten-week high as investors weighed the Reserve Bank of Australia's latest remarks and soft quarterly wages data. Australian wages rose at a moderate pace for a fifth straight quarter in the June quarter, as annual growth in the private sector slowed to its lowest level in four years. The softer private wage growth could ease some pressure on the RBA to tighten policy, although Deputy Governor Andrew Hauser warned that the central bank may need to raise rates again if upside inflation risks crystallize. He highlighted the Middle East conflict, the global AI boom and weak productivity as key risks to inflation. The RBA kept its cash rate at 4.35% last week after raising rates by 75 basis points since February to contain persistent price pressures. Attention now turns to Thursday’s jobs report, with employment expected to rise by 15,000 in July after a strong 76,300 gain in June, while unemployment is forecast to remain at 4.4%.
2026-08-19
Aussie Trades Near 10-Week Top
The Australian dollar traded above $0.70, near a ten-week high as a broadly weaker US dollar and improving domestic economic sentiment supported the currency. The greenback came under pressure as softer-than-expected US economic data prompted traders to trim the odds for further Federal Reserve rate hikes, raising concerns about US economic growth and the dollar’s yield advantage. The Aussie also drew support from improving domestic sentiment after the Reserve Bank of Australia held its interest rate at 4.35% following three hikes earlier in the year. Australian consumer confidence improved to a nine-month high in August, adding to expectations that the economy remains resilient. Markets are now focused on Thursday’s jobs report, with employment expected to rise by 15,000 in July after a strong 76,300 increase in June, while unemployment is forecast to remain at 4.4%. Quarterly wages data are also due on Wednesday, while RBA Deputy Governor Andrew Hauser will also be speaking.
2026-08-18
Australian Dollar Rises to 10-Week High
The Australian dollar rose above $0.71, 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