Australian Dollar advances on growing RBA rate hike bets
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AUD/USD extends its winning streak for the fourth successive session, trading around 0.7130 during the Asian hours on Wednesday. The pair advances as the Australian Dollar (AUD) gains support from growing expectations of a Reserve Bank of Australia (RBA) rate hike next week. RBA Deputy Governor Andrew Hauser said on Tuesday that volatility in oil prices and tensions in the Middle East pose a genuine challenge for central banks. Hauser added that the policy response depends on the magnitude and persistence of the price shock, which remains highly uncertain. He also noted that the Australian economy is in relatively good shape, with recent data indicating the economy has limited spare capacity. Australia’s headline inflation stands at 3.8% and may exceed 4% as petrol prices rise, while core inflation remains at 3.4%, above the RBA’s 2–3% target band. The AUD/USD pair also advances as the US Dollar (USD) edges lower after posting modest gains in the previous session. The Greenback may regain its ground amid increased safe-haven demand, which could be attributed to mounting uncertainty over the Middle East conflict. US President Donald Trump said late Monday that the conflict could end soon. However, US officials indicated on Tuesday that military operations were intensifying and that there were limited prospects for diplomatic negotiations, Reuters reported. Australian Dollar FAQs One of the most significant factors for the Australian Dollar (AUD) is the level of interest rates set by the Reserve Bank of Australia (RBA). Because Australia is a resource-rich country another key driver is the price of its biggest export, Iron Ore. The health of the Chinese economy, its largest trading partner, is a factor, as well as inflation in Australia, its growth rate and Trade Balance. Market sentiment – whether investors are taking on more risky assets (risk-on) or seeking safe-havens…
Filed under: News - @ March 11, 2026 2:30 am