The Australian dollar (AUD) experienced a decline against major foreign currencies during European trading on Wednesday, dropping about 0.25% to around 0.7010 against the US dollar (USD). There seems to be increasing selling pressure on Antipodean currencies as recent banking reports indicate that concerns regarding additional interest rate hikes by the Reserve Bank of Australia (RBA) are lessening.
Australian dollar price today
The details below highlight the daily percentage change for the Australian Dollar (AUD) in comparison to major currencies, revealing that the AUD was weakest against the Canadian dollar.
| USD | EUR | GBP | JPY | CAD | Australian Dollar | New Zealand Dollar | Swiss Franc | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.08% | 0.00% | 0.02% | -0.12% | 0.35% | 0.13% | 0.08% | |
| EUR | 0.08% | 0.05% | 0.09% | -0.06% | 0.36% | 0.21% | 0.16% | |
| GBP | -0.00% | -0.05% | 0.04% | -0.11% | 0.32% | 0.16% | 0.09% | |
| JPY | -0.02% | -0.09% | -0.04% | -0.15% | 0.29% | 0.10% | 0.03% | |
| CAD | 0.12% | 0.06% | 0.11% | 0.15% | 0.44% | 0.25% | 0.18% | |
| Australian Dollar | -0.35% | -0.36% | -0.32% | -0.29% | -0.44% | -0.18% | -0.24% | |
| New Zealand Dollar | -0.13% | -0.21% | -0.16% | -0.10% | -0.25% | 0.18% | -0.07% | |
| Swiss Franc | -0.08% | -0.16% | -0.09% | -0.03% | -0.18% | 0.24% | 0.07% |
The RBA has raised the Official Cash Rate (OCR) by 75 basis points this year, bringing it to 4.35%. Analysts from National Australia Bank (NAB) have noted that while the next adjustment in the cash rate may be a decrease, the exact timing remains vague due to uncertainties regarding economic trends and inflation. Meanwhile, economists at Commonwealth Bank anticipate that rates will stay at 4.35% until May 2027, when a cycle of cuts could potentially begin.
Notably, Australia’s Consumer Price Index (CPI) for April recorded a 4.2% increase year-on-year—below the expected 4.4% and March’s figure of 4.6%. This contrasts sharply with earlier predictions that the RBA might raise rates during the August 2026 meeting. In a related development, Australian Finance Minister Jim Chalmers announced a reduction in the tax rate from 16% to 15% for individuals earning between $18,201 and $45,000 starting in July 2026, with a further decrease to 14% in July 2027.
Looking ahead, investors are keenly awaiting the June policy announcement to gain more insights into the RBA’s stance on monetary policy. Most analysts expect the OCR to remain steady at 4.35%.
In early European trading, the US dollar index (DXY) slipped to approximately 99.90 ahead of the release of the May US consumer price index (CPI) data set to come out at 12:30 pm Japan time.
