Australian Dollar Hovers Near 3-Month Lows

The Australian dollar hovered around $0.693, extending the previous week’s roughly 0.2% loss to trade near three-month lows as persistent Middle East tensions weighed on global risk sentiment. The US launched another wave of strikes on Iran over the weekend in response to an attack on a container ship in the Strait of Hormuz, while Tehran retaliated by targeting US military facilities across the Middle East. Meanwhile, hawkish rhetoric from the Reserve Bank of Australia helped limit the Aussie’s losses. RBA Assistant Governor Sarah Hunter said last week that the board will act as needed to return inflation to its target, warning some tightening may be required if the oil shock lifts inflation expectations. Markets currently price around a 60% chance of one more rate hike later this year, up from roughly 40% previously, though futures imply only a 19% odds of an August move. Traders now await key employment and inflation data due later this month for fresh clues on the policy outlook.

Register a Revolut Business Account