Bearish
AUD/USD retreats to 0.7139 amid risk-off sentiment despite strong Australian GDP
AUD/USD has declined to 0.7139, influenced by risk-aversion flows into the US dollar, despite a robust Australian GDP report. The Australian economy expanded by 0.4% in Q2 2026, surpassing expectations and reinforcing the likelihood of further rate hikes by the Reserve Bank of Australia (RBA). However, global risk-off sentiment, partly due to Middle East tensions, has bolstered the US dollar, exerting downward pressure on AUD/USD.
Key points
- AUD/USD falls to 0.7139 as risk-off flows favor US dollar
- Australian GDP grows 0.4% in Q2 2026, exceeding expectations
- RBA rate hike odds increase to 75% for March 2027
Sources
AI-generated from public news sources. Not financial advice.
