AUD Weakens Despite Hawkish RBA Comments and Slowing Wage Growth
The Australian Dollar (AUD) weakened despite hawkish comments from Reserve Bank of Australia (RBA) official, Christopher Kent, also known as Hauser. This comes after data showed that wage growth in Australia slowed to 3.2% year-on-year in Q2 2026.
Analysts at UOB Group maintain that the risk for AUD is on the upside, but this has yet to materialize with the currency trading at 0.7080. They have been flagging a target of 0.7150 as the next level to monitor, but caution that only a breach of 0.7070 would mean the upside risk has faded.
The US Dollar (USD) is also weakening amid easing expectations of a US interest rate hike next month. The CME FedWatch tool shows traders now price in just a 35% chance of a rate hike at the Fed's September meeting, down significantly from 47% a month earlier.