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Australian dollar steadies near 0.7060 as traders await RBA remarks

Focus is on the RBA, with traders also repricing Fed rate path after US PPI and jobs data, with September hike odds at 30% and hold odds at 70%.

Reported · Written up by our desk · Major Pairs

The Australian dollar held close to 0.7061 against the US dollar, with AUD/USD down about 0.01% after US inflation data weighed on the greenback earlier in the session.

According to FXStreet, US data showed PPI below estimates and core PPI ticking lower versus forecasts, while initial jobless claims for the week ending August 8 rose to 209K from 200K, supporting the view that the labor market remains solid. The data shifted expectations for the Federal Reserve’s future policy path, with traders now pricing an interest-rate increase toward the end of 2026.

FXStreet also noted that the market response fed into event pricing for the September meeting, where probabilities moved to 30% for a hike and 70% for a hold. In Fed commentary, Austan Goolsbee and Thomas Barkin supported the data, while Cleveland Fed’s Beth Hammack argued the Fed should raise rates to restrain growth and inflation.

In Australia, Reserve Bank of Australia Assistant Governor Christopher Kent said inflation risks are to the upside and that rates would need to rise again if those risks materialize. Ahead, FXStreet said investors are watching a speech from RBA Governor Michelle Bullock, while the US calendar includes July Retail Sales and the University of Michigan Consumer Sentiment.

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