Australian Dollar Remains Steady

2026-09-23 01:08 By Joshua Ferrer 1 min. read

The Australian dollar was little changed around $0.71, struggling to sustain its rebound from a recent four-week low as firmer US dollar offset bets of an RBA rate hike next week, which is now largely priced in.

Governor Michele Bullock said upside inflation risks may be materializing, pointing to persistently high energy prices and continued excess demand in the domestic economy.

Earlier, Assistant Governor Sarah Hunter also reiterated that interest rates might need to rise for a fourth time this year to curb inflation.

Markets are now pricing a 95% chance of a 25bp hike to 4.60% on September 29, with rates seen peaking at 4.85% early next year.

Meanwhile, the greenback remains firm as remarks from Fed officials in the wake of its policy decision have flagged the possibility of more rate hikes if inflation does not cool.

Elsewhere, traders watched the upcoming US-China summit for signs of trade progress, which could support the Aussie given Australia’s strong trade ties with China.



News Stream
Australian Dollar Remains Steady
The Australian dollar was little changed around $0.71, struggling to sustain its rebound from a recent four-week low as firmer US dollar offset bets of an RBA rate hike next week, which is now largely priced in. Governor Michele Bullock said upside inflation risks may be materializing, pointing to persistently high energy prices and continued excess demand in the domestic economy. Earlier, Assistant Governor Sarah Hunter also reiterated that interest rates might need to rise for a fourth time this year to curb inflation. Markets are now pricing a 95% chance of a 25bp hike to 4.60% on September 29, with rates seen peaking at 4.85% early next year. Meanwhile, the greenback remains firm as remarks from Fed officials in the wake of its policy decision have flagged the possibility of more rate hikes if inflation does not cool. Elsewhere, traders watched the upcoming US-China summit for signs of trade progress, which could support the Aussie given Australia’s strong trade ties with China.
2026-09-23
Australian Dollar Hovers Near Multi-Week Lows
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.
2026-09-22
Australian Dollar Attempts Rebound
The Australian dollar rose above $0.71, attempting to recover from a recent four-week low as hawkish comments from the Reserve Bank’s top official reinforced expectations for further policy tightening. Governor Michele Bullock said upside inflation risks were materializing and warned that higher costs could make inflation more persistent, pointing to rising energy prices and continued capacity pressures in the domestic economy. Her remarks follow statements over the past month by senior RBA officials that inflation remains elevated and needs to ease further. Swaps markets now priced at least two more rate hikes by the February meeting, with a roughly 87% chance the first occurs on September 29. Markets now await the upcoming jobs data later this week for further clues on the policy outlook. Meanwhile, the risk-sensitive Aussie also benefited from easing oil prices amid signs of increased diplomatic efforts to resolve the Middle East conflict and restore energy flows from the region.
2026-09-18