Australian Dollar Holds at 1-Month Low

2026-09-17 00:39 By Joshua Ferrer 1 min. read

The Australian dollar held below $0.71, sitting at a four-week low after the Federal Reserve’s first interest-rate increase since 2023 boosted the US dollar, overshadowing expectations for further RBA tightening.

The Fed unanimously raised its federal funds rate by 25 basis points to 3.75%-4.00% as expected, citing elevated inflation, while updated projections showed 16 of 18 officials expect at least one more hike this year.

Focus now turns to the Reserve Bank of Australia’s September 29 policy decision, with markets pricing an 85% chance of a 25bp increase from the current 4.35% rate and expectations for the cash rate to reach 4.85% by early 2027.

The IMF also flagged persistent inflation and rising energy prices as risks that could require further RBA rate hikes.

Meanwhile, traders continued to monitor developments in the Iran-US war and its impact on oil prices.

Crude remains above $100 per barrel, although prices are easing as Saudi Arabia works to restore pipeline capacity.



News Stream
Australian Dollar Holds at 1-Month Low
The Australian dollar held below $0.71, sitting at a four-week low after the Federal Reserve’s first interest-rate increase since 2023 boosted the US dollar, overshadowing expectations for further RBA tightening. The Fed unanimously raised its federal funds rate by 25 basis points to 3.75%-4.00% as expected, citing elevated inflation, while updated projections showed 16 of 18 officials expect at least one more hike this year. Focus now turns to the Reserve Bank of Australia’s September 29 policy decision, with markets pricing an 85% chance of a 25bp increase from the current 4.35% rate and expectations for the cash rate to reach 4.85% by early 2027. The IMF also flagged persistent inflation and rising energy prices as risks that could require further RBA rate hikes. Meanwhile, traders continued to monitor developments in the Iran-US war and its impact on oil prices. Crude remains above $100 per barrel, although prices are easing as Saudi Arabia works to restore pipeline capacity.
2026-09-17
Australian Dollar Hits 4-week Low
AUDUSD decreased to 0.71, the lowest since August 2026. Over the past 4 weeks, Australian Dollar US Dollar gained 0.02%, and in the last 12 months, it increased 6.84%.
2026-09-16
Australian Dollar Under Pressure Ahead of Fed Decision
The Australian dollar steadied around $0.71, holding its recent decline near a four-week low as a firmer US dollar and higher Treasury yields weighed on the currency ahead of the Federal Reserve’s policy decision. The greenback strengthened as markets widely expected the Fed to raise interest rates by 25 basis points, its first increase in around three years, while the US 10-year Treasury yield climbed above 5%, its highest level since 2007, as surging oil prices and persistent inflation concerns reinforced expectations for tighter policy. Oil prices held near a four-month peak above $105 a barrel after fresh Houthi attacks on Saudi Arabia and the postponement of Gulf-Iran talks. Domestically, the Reserve Bank of Australia’s hawkish stance continues to provide some support, with markets pricing an 85% probability of a rate increase to 4.60% at its September 29 meeting. Investors now await comments from Governor Bullock, which is scheduled to appear before Parliament on Friday.
2026-09-16