23.03.202604:00:06UTC+00Aussie Dollar Extends Fall to 1-Week Low

The Australian dollar slipped to around $0.69 on Monday, extending last week’s losses and touching its lowest level in more than a week, as a firmer US dollar and a selloff in Asian equities pressured the risk‑sensitive currency. The greenback found broad support from safe‑haven flows amid rising geopolitical tensions in the Middle East. US President Trump warned of potential strikes on Iranian power facilities should the Strait of Hormuz remain blocked, while Tehran responded with threats to target key US and Israeli assets.

Sentiment toward the Aussie was further undermined by declining Asian stock markets, which reflected mounting concerns about the wider economic fallout from the conflict and weakened demand for commodity‑linked currencies. On the domestic front, investors are now focused on Wednesday’s inflation release, following the Reserve Bank of Australia’s narrowly approved decision to lift the cash rate to 4.1%. The move marked the first consecutive rate increase since mid‑2023 and effectively reversed two of the three cuts implemented last year, as the RBA continues its efforts to curb stubborn inflation.