Australian dollar extends rally as markets cut odds of RBA hike in November
The Australian dollar rose for a fourth straight session, while traders lowered the chance of a November RBA rate hike to 44%, Reuters reports.
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what happened
According to Reuters, the Australian dollar climbed on Wednesday for a fourth session in a row, gaining 0.1% to $0.7011 as US yields fell. The New Zealand dollar eased slightly to $0.5676.
Reserve Bank of Australia Deputy Governor Andrew Hauser said tighter policy was working, but the inflation outlook still looked "materially worse", partly due to high oil prices. The RBA meets on November 3 and will discuss whether to raise rates for a fifth time this year. After his remarks, the market odds of a November hike rose to 44% from 30%, and a December move to 64%.
Analysts expect core inflation to rise 0.9% to 1.0% in the third quarter, keeping the annual pace at 3.5%, well above the RBA's 2% to 3% target band.
why it matters
Expectations of further rate hikes support the Australian dollar, while lower US yields ease pressure on the pair. Consumer price data due next week could sharply shift the probability picture.
market impact
AUD/USD: expectations of tighter RBA policy support the Australian dollar
tags
instruments
sources
- Australian dollar extends rally, market narrows odds on hike — Reuters, 21 October 2026 at 00:36 UTC
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