Aussie Dollar Weakens as Greenback Firms

EthereumCraftsman · 2026-02-02T03:20:18+00:00

The Australian dollar fell to $0.69 due to a stronger US dollar after Trump's Fed nominee, though expectations of a rate hike by the Reserve Bank of Australia provided some support. Inflation slowed, while job ads showed significant growth.

EthereumCraftsman

2026-02-02 03:20:18

Abstract generation in progress

The Australian dollar weakened to around $0.69 per dollar on Monday, trimming gains from the previous week as a firmer US dollar weighed on the currency. The greenback strengthened following President Donald Trump’s nomination of Kevin Warsh as the next Fed chairman. Markets view Warsh as a more hawkish candidate, expected to favor lower interest rates. However, the Aussie’s decline was partially offset by expectations of a rate hike from the Reserve Bank of Australia. Investors widely anticipate that the central bank will raise the cash rate by 25 bps to 3.85% on Tuesday, marking the first increase in over two years in a bid to rein in persistent inflation. On the economic front, Australia’s Monthly Inflation Gauge rose 0.2% in January 2026, slowing from December’s 1% and marking the slowest pace since August 2025. Meanwhile, ANZ-Indeed Job Ads jumped 4.4% month-on-month in December, the first increase since July and the strongest monthly gain since February 2022.

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.