|

Australian Dollar: Watching crosses as RBA nears peak – Rabobank

RaboResearch Global Economics & Markets discusses how the Australian Dollar has been one of the best-performing G10 currencies in 2026, helped by three RBA rate hikes, but notes recent softer Australian data suggest the cycle may be near its peak. The bank expects one more RBA hike, likely in August, and sees AUD/NZD stabilizing, GBP/AUD downside over 3–6 months, AUD/USD higher over 3–12 months, and EUR/AUD range-bound.

Rabobank sees AUD still well positioned

"In view of the rate hikes announced by the RBA and the Norges Bank this year and the swiftness with which both central banks threw off their dovish guidance which had persisted into the end of last year, it is unsurprisingly that the NOK and the AUD are the best performing G10 currencies this year."

"More recently, however, the AUD has fallen back in the rankings with softer domestic economic data suggesting that the central bank’s rate hiking cycle may already be close to a peak."

"In line with the market consensus, it is Rabobank’s view that the RBA is likely to hike rates once more this year, potentially in August."

"Uncertainties about growth and inflation suggest scope for further movements in the weeks and months ahead, but from a relative basis the Australian economy and the AUD still appear well positioned."

"After a correction lower last month, AUD/NZD appears to have already found its feet."

"We also forecast a move higher in AUD/USD on a 3-to-12-month view."

"We expect range trading in EUR/AUD in the coming months."

"While GBP/AUD has remained in a tight range in recent weeks, we would look to sell rallies in anticipation of a move lower on a 3-to-6-month view."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)

Author

FXStreet Insights Team

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

More from FXStreet Insights Team
Share:

Editor's Picks

AUD/USD meets support near 0.7150

AUD/USD comes under renewed and quite strong selling pressure ahead of the Asia opening bell on Friday, drifting back toward multi-day troughs near 0.7150, where it seems to have met some decent contention for now. The Aussie’s decline follows the inflation-reignited uptick in the Greenback in response to robust US factory-gate prices in August.


USD/JPY consolidates around 153.50 as bears turn cautious ahead of US inflation

USD/JPY stabilizes above 153.50 during the Asian session on Thursday, but remains near a seven-month low set earlier this week as hawkish BoJ repricing continues to underpin the Japanese Yen. Meanwhile, rising September Fed rate-hike bets and escalating US-Iran tensions help ease US Dollar selling pressure, offering some support to the currency pair ahead of US inflation figures.

Gold remains weak, retargets $4,350

Gold keeps the choppy price action on Thursday, now slipping back toward the $4,350 region per troy ounce amid the robust bounce in the US Dollar as well as rising US Treasury yields across the curve, particularly following US Producer Prices and ahead of Friday’s more relevant US CPI data.

Bitcoin and Gold Outlook: BTC and XAU drop as US PPI broadens rate-hike bets
Cryptocurrency prices are broadly correcting, led by Bitcoin (BTC), which is trading around $77,000 on Thursday, marking four consecutive days of declines. Meanwhile, Gold (XAU) remains sideways, hovering around $4,365, with upside capped below $4,400.
ECB recap: A hawkish hike despite downside growth risks
The European Central Bank (ECB) increased the Deposit Facility Rate to 2.50%, the Refinancing Rate to 2.65% and the Marginal Lending Facility to 2.90%, effective from September 16. The decision was accompanied by a clear warning that the outlook remains highly uncertain, with risks tilted to the upside for inflation and to the downside for growth.
Venezuela’s 65-billion-barrel Oil deal could reshape America’s inflation fight
The United States (US) has secured unprecedented access to part of Venezuela’s vast Oil reserves. The timing is particularly significant as the war with Iran is disrupting Middle Eastern supplies, keeping energy prices elevated and reviving concerns about inflation.