Aussie Holds Near Four-Month Peak as RBA Hike Expectations Grow

The Australian dollar held steady near its four-month peak on Monday, supported by expectations that the Reserve Bank of Australia (RBA) will raise interest rates for a fourth time this year.

At $0.7202, the Aussie is facing resistance at Friday's high of $0.7214 but has further to run before reaching the 2026 high of $0.7277.

The kiwi dollar, however, struggled, down 0.2% at $0.5871 after a dovish Reserve Bank of New Zealand led markets to price in an 80% chance for a policy pause next month.

Analysts at the Commonwealth Bank of Australia predict that the Aussie could remain near 72 cents this week if RBA Deputy Governor Andrew Hauser or Assistant Governor Sarah Hunter sound hawkish during their upcoming speeches.