Australian Dollar Trades Near 1-Month High

2026-10-26 01:18 By Joshua Ferrer 1 min. read

The Australian dollar held above $0.70, trading near four-week highs as hawkish Reserve Bank of Australia (RBA) signals reinforced expectations of another interest rate hike in November.

In a television interview, RBA Assistant Governor Sarah Hunter said the central bank had not yet done enough to bring inflation under control.

She added that higher oil prices linked to the US-Iran war are becoming embedded in some supply chains, with more of that effect expected.

Her remarks reinforced expectations of a restrictive monetary stance following four rate hikes earlier this year, keeping markets focused on the November 3 policy meeting.

Last week, Deputy Governor Andrew Hauser also warned the inflation outlook is materially worse than the central bank assessed in August.

Attention now turns to Wednesday’s Q3 inflation report, which could strengthen or temper expectations for further tightening, after August CPI was still above the RBA's 2-3% target range.



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