2026.06.2300:59:47UTC+00Aussie Dollar Extends Decline to 11-Week Low

The Australian dollar extended losses below the $0.70 mark, touching an eleven-week low as the US dollar continued to strengthen and investors turned cautious ahead of key inflation and labor market data. The releases this week are seen as pivotal for assessing whether the Reserve Bank of Australia has concluded its rate-hiking cycle.

Headline inflation is forecast to accelerate to 4.4% in May from 4.2% the previous month, while the core measure is expected to edge up to 3.5% from 3.4%. Both readings would remain comfortably above the central bank’s target range. Following the CPI release, Deputy Governor Andrew Hauser is scheduled to speak on the inflation outlook, which markets will scrutinize for policy clues.

On the labor front, economists expect a gain of 25,000 net jobs in May, with the unemployment rate seen dipping to 4.4% after rising to a four-and-a-half-year high of 4.5% in the prior month.

Meanwhile, the US dollar continued to advance as traders priced in the likelihood of a Federal Reserve rate increase this year, encouraged by persistently hawkish commentary from policymakers. Elsewhere, the risk-sensitive Australian dollar drew some support from early signs of progress in ongoing US–Iran peace negotiations.