Australian Dollar Hits 8-week Low

AUDUSD decreased to 0.69, the lowest since July 2026. Over the past 4 weeks, Australian Dollar US Dollar lost 0.96%, and in the last 12 months, it increased 6.22%.

The Australian dollar dropped below $0.69, reaching its lowest level since late March as a sharp selloff in global equities dampened demand for risk-sensitive assets. Often viewed as a proxy for global risk, the Aussie came under pressure as concerns mounted that the Democrats’ sweeping victory in the US midterm elections could lead to tighter regulations on the AI industry. In Australia, uncertainty over the Reserve Bank’s policy path remained in focus after the central bank raised rates for the fifth time this year to an 18-year high. It was met with a closely divided 6–3 vote and less hawkish guidance, boosting expectations that rates had peaked. However, Deputy Governor Andrew Hauser warned that weakening public confidence in the RBA’s ability to control inflation could make disinflation more costly, potentially requiring a more aggressive policy response. Swaps currently imply just a 6% chance of another hike in December, while a quarter-point rate cut is fully priced by year-end.

The Australian dollar strengthened above $0.70, recovering from a two-week low as a weaker US dollar and improved global risk appetite lifted demand for risk-sensitive currencies. Global markets rallied after Democratic victories in the US midterm elections gave the party control of both chambers of Congress, raising hopes of progress toward ending the US-Iran conflict. Fears of an imminent attack on Iran subsequently faded, triggering a nearly 9% drop in oil prices and a broad retreat in the US dollar. The rebound came despite domestic headwinds after the RBA hiked interest rates for a fifth time this year but dropped its tightening bias. Swaps now imply just a 6% chance of another increase in December, while a quarter-point rate cut is fully priced by year-end. Focus is also on RBA Deputy Governor Andrew Hauser, who is due to speak later today about trust in the transmission of monetary policy and may face questions about how lower oil prices could affect the policy outlook.