Australian Dollar Hovers Near 2-Month Low

2026-09-28 01:43 By Joshua Ferrer 1 min. read

The Australian dollar traded around $0.70, near an eight-week low as investors remained cautious ahead of the Reserve Bank of Australia’s monetary policy meeting.

The Aussie finished 1.4% lower last week, its third straight weekly loss, battered by a broadly stronger US dollar and elevated US Treasury yields as the Federal Reserve raised interest rates earlier this month and signaled the possibility of further increases.

The losses came despite markets having largely priced in a 25-basis-point rate hike to 4.60% by the RBA on Tuesday, its fourth rate hike this year.

Markets are pricing in about 40 bps of more tightening after Tuesday.

Attention is also on the upcoming monthly inflation data for August.

Forecasts are centered on an annual rise of 4% in headline inflation, picking up from 3.5% in July, as petrol prices jumped, while underlying inflation remained sticky at 3.6%.

Oil prices remained elevated as uncertainty persisted over whether the US and Iran could reach a truce soon.



News Stream
Australian Dollar Hovers Near 2-Month Low
The Australian dollar traded around $0.70, near an eight-week low as investors remained cautious ahead of the Reserve Bank of Australia’s monetary policy meeting. The Aussie finished 1.4% lower last week, its third straight weekly loss, battered by a broadly stronger US dollar and elevated US Treasury yields as the Federal Reserve raised interest rates earlier this month and signaled the possibility of further increases. The losses came despite markets having largely priced in a 25-basis-point rate hike to 4.60% by the RBA on Tuesday, its fourth rate hike this year. Markets are pricing in about 40 bps of more tightening after Tuesday. Attention is also on the upcoming monthly inflation data for August. Forecasts are centered on an annual rise of 4% in headline inflation, picking up from 3.5% in July, as petrol prices jumped, while underlying inflation remained sticky at 3.6%. Oil prices remained elevated as uncertainty persisted over whether the US and Iran could reach a truce soon.
2026-09-28
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, while jobless rate edged up 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's September 28–29 meeting and 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, the 10- and 30-year US Treasury yields rose to their highest levels since 2007 and 2004, respectively, while the dollar climbed to a near two-month high as stronger US economic data and elevated oil prices fueled concerns over inflation and higher interest rates.
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