Australian Dollar Hovers Near Multi-Week Lows

2026-09-22 01:44 By Joshua Ferrer 1 min. read

The Australian dollar hovered around $0.71, trading in a sideways range near multi-week lows as a stronger US dollar offset rising bets of another RBA rate hike.

In a podcast interview, RBA Assistant Governor Sarah Hunter confirmed the need for further rate hikes this year.

She reiterated the central bank’s warnings that inflation has remained too high for too long, risking becoming embedded in price-setting behavior.

The comments lifted market pricing for a 25-bp rate hike at the RBA’s September 29 meeting to 95%.

All four major banks now also expect a move at next week’s meeting, with ANZ expecting another increase in November.

Focus now turns to Governor Bullock’s remarks and a speech by a board member later today.

Meanwhile, the greenback remained firm as hawkish remarks from Federal Reserve officials reinforced expectations for further rate hikes.

Last week, the Fed raised rates for the first time in three years and signaled further tightening later this year to curb inflation.



News Stream
Australian Dollar Trades Near Multi-Week Highs
The Australian dollar held above $0.70, trading near multi-week highs after hotter-than-expected inflation data boosted expectations for a fifth interest rate hike this year. The monthly CPI rose 0.8% in September, the biggest increase in six months and above the expected 0.7%, while the annual pace jumped to 4.3% from 4.0% in August, also surpassing forecasts of 4.2% and reaching its highest since March. The monthly core inflation rose 0.3%, matching expectations, while the annual rate edged up to 3.6% from 3.5%, also in line with forecasts. The pickup pushed inflation further above the RBA’s 2–3% target range, boosting bets on a hike at the November 3 meeting. The data followed remarks from RBA Governor Michele Bullock earlier on Wednesday, when she warned that upside risks to inflation were materializing and price pressures would likely exceed the central bank’s August forecast. Traders raised the probability of a November hike to 88%, up from 60% before the inflation report.
2026-10-28
Australian Dollar Steady Ahead of CPI Data
The Australian dollar was little changed around $0.70, staying near four-week highs as investors braced for the upcoming inflation figures that could boost expectations for another interest rate hike. The third-quarter CPI report is due Wednesday, with underlying inflation expected to rise by a sharp 1.0% quarter-on-quarter, keeping the annual rate at 3.6%. That would leave inflation well above the Reserve Bank of Australia’s 2%–3% target range and could bolster the case for a fifth rate hike this year. RBA Governor Michele Bullock and other senior officials are also scheduled to appear before lawmakers as the data is released, putting them under pressure to respond to the latest inflation figures and their implications for the policy outlook. Markets are currently pricing in a 66% chance of a 25-basis-point RBA rate hike to 4.85% at its November 3 meeting, with the move widely expected to mark the peak of the current tightening cycle.
2026-10-27
Australian Dollar Trades Near 1-Month High
The Australian dollar held above $0.70, trading near four-week highs as hawkish Reserve Bank of Australia (RBA) signals reinforced expectations of another interest rate hike in November. In a television interview, RBA Assistant Governor Sarah Hunter said the central bank had not yet done enough to bring inflation under control. She added that higher oil prices linked to the US-Iran war are becoming embedded in some supply chains, with more of that effect expected. Her remarks reinforced expectations of a restrictive monetary stance following four rate hikes earlier this year, keeping markets focused on the November 3 policy meeting. Last week, Deputy Governor Andrew Hauser also warned the inflation outlook is materially worse than the central bank assessed in August. Attention now turns to Wednesday’s Q3 inflation report, which could strengthen or temper expectations for further tightening, after August CPI was still above the RBA's 2-3% target range.
2026-10-26