Live Updates > Live Update Details
2026-09-21 14:14:11
[Australian Dollar Consolidates, RBA Tightening Expectations Support Exchange Rate] 1. The Australian dollar traded steadily on Monday, currently fluctuating around 0.7122, after two consecutive weeks of declines. A more hawkish outlook for US interest rates has cooled the recent rally in the Australian dollar; however, with another rate hike in Australia almost a certainty, the Australian dollar remains near multi-year highs against the New Zealand dollar and the euro. 2. The Australian dollar has now moved away from its four-month high of 0.7238, with support around 0.7075. The market expects the Reserve Bank of Australia (RBA) to raise interest rates to 4.6% next week. The Australian dollar is trading at NZ$1.2454 against the New Zealand dollar, hovering near a 13-year high; and at AUD$1.6106 against the euro, close to a 22-month high. 3. The Commonwealth Bank of Australia (CBA) and ANZ Bank adjusted their interest rate forecasts on Monday, now expecting the RBA to raise rates next Tuesday. This means all four major Australian banks now predict a rate hike next week. ANZ Bank also expects rates to rise further to 4.85% in November. 4. Adam Boyton, Head of Australian Economic Research at ANZ Bank, said the Reserve Bank of Australia (RBA) had several opportunities over the past week to lower market expectations for a near-term rate hike through public communication, but has so far chosen not to. He believes that speeches by RBA officials tomorrow are unlikely to significantly reduce the likelihood of a September rate hike. Governor Bullock will speak on Tuesday, RBA Governing Council member Iain Ross will speak that evening, and Assistant Governor Hunt will participate in a podcast interview on Tuesday morning.
