FX.co ★ Aussie Dollar Holds Near 1-Month High

The Australian dollar hovered around $0.709, near a four-week high, supported by renewed optimism over a potential US–Iran peace agreement as investors assessed the Reserve Bank of Australia’s latest signals. Deputy Governor Andrew Hauser reiterated that inflation remains above the RBA’s 2–3% target band and emphasized that policymakers are not yet confident current interest rates are sufficiently restrictive. He cautioned that further rate increases may be required, particularly as the economy continues to absorb the inflationary effects of higher oil prices stemming from tensions in the Middle East. Following Hauser’s comments, markets nudged up the probability of a rate hike next month to 72% from 69%. Key first-quarter inflation figures, along with crucial labor market and consumer spending data, are still due this month and will be closely watched ahead of the policy decision. At the same time, the US and Iran signaled a willingness to continue talks toward a longer-term ceasefire after extended weekend negotiations failed to deliver a breakthrough, prompting President Trump to announce a blockade of Iranian oil exports.