AUD/USD Price Outlook: RBA’s Hunter’s strong comments boost Australian Dollar

July 8, 2026

On Wednesday, the Australian dollar (AUD) gained about 0.23% against the US dollar (USD), trading at approximately 0.6943. This increase is attributed to the Reserve Bank of Australia (RBA) keeping options open for possible monetary policy adjustments to control inflation, with the AUD showing strength against most major currencies, apart from the New Zealand dollar (NZD).

Australian dollar price today

The following section illustrates the percentage changes of the Australian Dollar (AUD) in relation to various major currencies. Notably, the AUD has performed well against the Japanese yen.

Earlier statements from RBA Assistant Governor Sarah Hunter indicated the central bank’s readiness to take action on inflation, despite a recent spike in oil prices not significantly affecting economic activity thus far.

This year, the RBA has already raised interest rates three times, incrementally increasing the Official Cash Rate (OCR) to 4.35%.

Market participants are now looking ahead to the Consumer Price Index (CPI) figures from China, set to be released on Thursday, for further insights.

Meanwhile, the US dollar shows a slight decline as investors await the June Federal Open Market Committee (FOMC) meeting minutes, which are expected at 6 PM Japan time. These minutes may provide additional guidance on future Federal Reserve monetary policies.

AUD/USD technical analysis

Currently, the AUD/USD pair is trading at around 0.6944. It’s worth noting that this is below the 20-period exponential moving average (EMA) of 0.6967, indicating a somewhat bearish near-term trend. The pair’s inability to break through this resistance suggests that upward movements may be limited, with the relative strength index (RSI) hovering below the midline at 42.75, pointing to modest selling pressure.

Resistance for the near term is focused around the 20-period EMA of 0.6967, which must be surpassed to shift sentiment to a more positive outlook. Conversely, significant support is found at the June 30th low of 0.6865; falling below this point could lead to further declines toward the March 30th low of 0.6833.

Australian Dollar Frequently Asked Questions

The interest rate set by the Reserve Bank of Australia (RBA) plays a vital role in the value of the Australian dollar (AUD). Given Australia’s resource-rich landscape, iron ore prices also significantly influence the currency. Other factors include inflation, growth rates, trade balances, and overall market sentiment.

The RBA impacts the AUD by adjusting interest rates, which in turn influence lending rates across the economy. The central bank aims to maintain stable inflation levels, and higher interest rates usually bolster the Australian dollar.

China, as Australia’s main trading partner, greatly affects the AUD’s value. A strong Chinese economy boosts demand for Australian exports, which can increase the AUD’s value, while slower growth has the opposite effect.

Australia’s largest export, iron ore, fundamentally impacts the AUD. If iron ore prices rise, so does demand for the AUD, strengthening its value. Conversely, falling prices can weaken it.

The balance of trade, representing the difference between exports and imports, also influences the AUD. A positive balance, driven by strong exports, typically leads to currency appreciation, while a negative balance can result in depreciation.