The Australian dollar faced renewed selling pressure on Wednesday, November 11, 2026, adding to the challenges the Reserve Bank of Australia (RBA) faces in its fight against inflation. The currency hit a fresh seven-month low overnight, further complicating the RBA's efforts to control rising prices, which have already led to the highest borrowing costs in 18 years.
The decline in the Aussie came after a senior US Federal Reserve official hinted at a potential supersized interest rate hike of half a percentage point next month if inflation in the United States remains elevated. This warning amplified concerns about the global economic outlook and its impact on the Australian dollar.
The weakening currency poses a dual threat: it could exacerbate inflation by making imports more expensive, while also raising the cost of debt servicing for Australian households and businesses. The RBA has been walking a fine line between tightening monetary policy to curb inflation and avoiding a sharp economic slowdown.