Australian Dollar Hits 4-week High

AUDUSD increased to 0.70, the highest since September 2026. Over the past 4 weeks, Australian Dollar US Dollar gained 0.29%, and in the last 12 months, it increased 7.98%.

The Australian dollar held above $0.70, staying near a four-week high as hawkish commentary from the central bank boosted expectations of another interest rate hike. RBA Deputy Governor Andrew Hauser said tighter monetary policy was working, but warned that the inflation outlook remained “materially worse” partly due to elevated oil prices. He emphasized the need to keep inflation expectations anchored ahead of the RBA’s November 3 meeting, where policymakers will consider a fifth rate hike this year. Markets subsequently doubled the chance of a quarter-point hike in November to 64%. Attention now turns to third-quarter inflation data due next week, with core inflation expected to rise 1.0% quarter-on-quarter, up from 0.9% previously. Annual core inflation is also projected to remain at 3.5%, well above the RBA’s 2%-3% target range. Meanwhile, a technology-led global equity selloff over concerns about heavy AI investments weighed on risk-sensitive currencies such as the Aussie.

The Australian dollar held its recent gains near $0.70, remaining above multi-month lows as investors awaited further clues on the policy outlook. RBA Deputy Governor Andrew Hauser is due to speak on Wednesday, which could provide insight into the prospects for a fifth rate hike this year. An RBA official recently noted that the labor market may be cooling faster than anticipated, though the next inflation report on October 28 remains key to the policy outlook. Core inflation is expected to rise by 0.9–1.0% in the third quarter, potentially lifting the annual rate to 3.5–3.6%, above the RBA’s 2–3% target and its 3.3% forecast. Governor Michele Bullock and other officials will also face lawmakers that day, offering an opportunity to address the latest figures. Markets now price in roughly a one-in-three chance of a November hike, rising to 56% for December. Elsewhere, the Aussie also drew support from a broadly weaker euro as political concerns in France weighed on the single currency.