Aussie Dollar Steadies After Strong GDP Data

2026-09-02 02:22 By Joshua Ferrer 1 min. read

The Australian dollar steadied around $0.71, holding recent losses as investors assessed stronger-than-expected GDP data that strengthened the case for another interest rate hike.

The economy expanded 0.4% quarter-on-quarter in Q2, beating forecasts for 0.3% growth, while annual growth accelerated to 2.1%, above expectations for 1.8%.

The stronger reading suggested economic activity remains resilient despite the Reserve Bank's efforts to cool demand and curb persistent inflation.

Markets raised the odds of a fourth rate hike at the September meeting to 57% from 48% previously after the GDP release, while a November hike is now more than fully priced in.

The probability of another hike in Q1 2027 also rose to 82% from 62%.

Meanwhile, concerns over potential oil supply disruptions amid the escalating US-Iran conflict have pushed energy prices higher, adding to inflation pressures.

However, a stronger US dollar capped the Aussie as rising yields boosted demand for safe-haven currencies.



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Aussie Dollar Steadies After Strong GDP Data
The Australian dollar steadied around $0.71, holding recent losses as investors assessed stronger-than-expected GDP data that strengthened the case for another interest rate hike. The economy expanded 0.4% quarter-on-quarter in Q2, beating forecasts for 0.3% growth, while annual growth accelerated to 2.1%, above expectations for 1.8%. The stronger reading suggested economic activity remains resilient despite the Reserve Bank's efforts to cool demand and curb persistent inflation. Markets raised the odds of a fourth rate hike at the September meeting to 57% from 48% previously after the GDP release, while a November hike is now more than fully priced in. The probability of another hike in Q1 2027 also rose to 82% from 62%. Meanwhile, concerns over potential oil supply disruptions amid the escalating US-Iran conflict have pushed energy prices higher, adding to inflation pressures. However, a stronger US dollar capped the Aussie as rising yields boosted demand for safe-haven currencies.
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Aussie Holds Near Multi-Month Highs
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