Australian Dollar Hits 7-Week Low

2026-09-24 02:19 By Joshua Ferrer 1 min. read

The Australian dollar weakened to around $0.70, hitting a seven-week low as a stronger US dollar and a renewed selloff in global bond markets weighed on risk-sensitive currencies.

The move came despite Australian employment rising by a stronger-than-expected 39,500 in August, well above forecasts for a 20,000 increase.

The unemployment rate edged higher to 4.6%, its highest in five years, pointing to mixed labor-market conditions.

The report was the final major economic release before the Reserve Bank of Australia's September 28–29 meeting, but persistent inflation risks are keeping the central bank on track for another rate hike.

Markets are pricing a 95% chance of a 25-bp hike to 4.60% in September and a possible peak around 5.10%.

Meanwhile, uncertainty surrounding US-Iran negotiations kept oil prices elevated, fueling inflation concerns and a renewed selloff in global bond markets, while strong US business activity has increased bets for another Fed hike, boosting the greenback.



News Stream
Australian Dollar Hits 7-Week Low
The Australian dollar weakened to around $0.70, hitting a seven-week low as a stronger US dollar and a renewed selloff in global bond markets weighed on risk-sensitive currencies. The move came despite Australian employment rising by a stronger-than-expected 39,500 in August, well above forecasts for a 20,000 increase. The unemployment rate edged higher to 4.6%, its highest in five years, pointing to mixed labor-market conditions. The report was the final major economic release before the Reserve Bank of Australia's September 28–29 meeting, but persistent inflation risks are keeping the central bank on track for another rate hike. Markets are pricing a 95% chance of a 25-bp hike to 4.60% in September and a possible peak around 5.10%. Meanwhile, uncertainty surrounding US-Iran negotiations kept oil prices elevated, fueling inflation concerns and a renewed selloff in global bond markets, while strong US business activity has increased bets for another Fed hike, boosting the greenback.
2026-09-24
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