Currencyshares Aus Dollar Trust(FXA.US)

The Week Ahead – The Calm After The Storm

The Australian dollar (AUDUSD) has declined from its recent high following a cash rate increase, with inflation risks keeping a dovish tone. Gold (XAUUSD) remains volatile, seeking direction amid global risks, while the Nasdaq 100 has hit a fresh low due to intensified sell-offs in technology stocks. The market anticipates further earnings this week, with critical support levels at 0.6950 for AUDUSD, 4500 for gold, and 24500 for NAS 100.

The Australian dollar/US dollar intraday increase reached 1.0%, reported at 0.6994

After Extending Its Gains, The Greenback Softens

The US dollar has softened this week against most G10 currencies, with the Australian dollar being the only gainer after the Reserve Bank of Australia's rate hike. The dollar's recent gains appear technical, correcting losses from January. The US jobs report is delayed due to a government shutdown. The euro and sterling have faced downward pressure, while the Canadian dollar is stabilizing. The Mexican peso and Indian rupee show limited reaction to central bank decisions. Overall, the dollar's performance is mixed amid various economic indicators and upcoming elections in Japan and Thailand.

RBA Rate Hike Lifts AUD Again: Will Australian Dollar Continue Rising in 2026?

The Reserve Bank of Australia (RBA) raised interest rates by 25 basis points to 3.85% in February 2026, surprising markets expecting rate cuts. This move is attributed to strong private sector demand and a resilient economy, with unemployment at 4.1%. The Australian dollar (AUD) is nearing 0.70 against the US dollar, supported by high inflation and commodity prices. Analysts predict the AUD could stabilize at 0.7100 by mid-2026, with Goldman Sachs and Morgan Stanley maintaining positive outlooks on the currency due to economic resilience and inflation dynamics.

AUD/CAD Rises Above 0.9500 Ahead Of Canada’s Labor Market Data

AUD/CAD trades around 0.9520 after recovering from daily losses, supported by higher oil prices. However, the upside may be limited ahead of Canada’s labor market data and Ivey PMI release. WTI oil prices are around $64.00 per barrel but are on track for a weekly decline. The Australian Dollar weakened due to a tech-led equity sell-off but regained some ground after RBA Governor Michele Bullock indicated a need for a tighter monetary policy due to capacity constraints in the economy.