Jun 23, 2026 – 4.00pmThe Australian dollar is holding firm above US70¢ despite an unexpected hawkish pivot from the US Federal Reserve, thanks to a lingering bet in the bond market that the Reserve Bank of Australia will have to raise interest rates one more time this year.The local currency came under some pressure last week after the new Fed chairman, Kevin Warsh, vowed to rein in red-hot inflation that prompted traders to price in US rate rises and sparked a rally in the greenback. Since its peak in mid-May, the Aussie has fallen 3.6 per cent.Subscribe to gift this articleGift 5 articles to anyone you choose each month when you subscribe.Subscribe nowAlready a subscriber? Fetching latest articles
Lingering RBA rate rise bets keeps Aussie dollar afloat
Forex traders can’t shake the feeling that the Reserve Bank has not finished raising rates, which is keeping the Australian dollar steady for now.
TL;DRAI
Australian dollar holds above 70¢ USD on RBA rate-hike bets despite Fed strength; down 3.6% since May. For tech companies with APAC footprints, FX volatility impacts cloud costs and M&A pricing; RBA-Fed divergence signals hedging and budget recalibration needs.
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