Australian Dollar Monthly

The Australian dollar was relatively resilient in early September before weakening to close the month lower against all major currencies and rank among the weaker members of the G10 currency basket. The AUD trade-weighted index fell to its lowest level since June.

The Australian dollar was the strongest-performing G10 currency in August, while the trade-weighted index rose to its highest level since early June.

The Australian dollar recorded its first monthly gain against the US dollar since April. The rise occurred despite escalating violence in the Middle East, as the US-Iran ceasefire agreement broke down, and a decline in market pricing for a further RBA cash rate increase following a softer-than-expected Australian CPI report.

The Australian dollar recorded its weakest monthly performance against the US dollar since December 2024 and was among the poorest performers within the G10 currency basket. In contrast, the US dollar was the strongest currency, followed by the British pound, Japanese yen, and euro.

The Australian dollar continued to be driven by news around a potential US-Iran ceasefire extension and changing expectations for RBA cash rate hikes, before closing the month marginally lower.

The Australian dollar outperformed all the G10 currencies in April, except for the Norwegian krone, with the krone remaining supported by high oil prices.