The Australian dollar is awaiting a central bank rate hike, while the U.S. dollar remains firm amid high interest rates

The Australian dollar is awaiting a central bank rate hike, while the U.S. dollar remains firm amid high interest rates

29.09.2026 New

On the previous business day, the U.S. dollar held steady against other currencies amid high U.S. interest rates. The yield on the 10-year U.S. Treasury note rose on the back of higher crude oil prices and expectations of further rate hikes, briefly surpassing 5.27% to reach a 19-year high.The dollar-yen exchange rate traded in the low 157-yen range, with yen selling somewhat curbed following last week’s warnings from Japanese and U.S. authorities about yen weakness. Meanwhile, the view that the Fed will continue raising rates remains strong, and the dollar continues to be supported by the U.S. interest rate differential.

Among European currencies, the euro is trading in the mid-1.13 range against the dollar, and upward momentum remains limited against the backdrop of a strong dollar. The pound is also vulnerable to the impact of rising U.S. interest rates. Meanwhile, the biggest event in today’s currency market will be the Reserve Bank of Australia’s policy rate announcement.In Australia, core inflation has exceeded the target, and rising energy prices are also posing inflationary risks; as a result, the market has almost fully priced in a 0.25-point rate hike to 4.60%. The Australian dollar is trading in the 0.70 range, and attention will also be focused on the content of the statement following the decision.

In the U.S., the Conference Board’s Consumer Confidence Index for September is expected to show a slight decline to 89.1 from 89.4 in the previous month, while August JOLTS job openings are projected to fall to 7.228 million from 7.271 million.If a clear slowdown is evident in the U.S. labor market, speculation about additional interest rate hikes—which has been gaining momentum recently—could subside. On the other hand, if the data comes in stronger than expected, U.S. interest rates and the dollar could rise again, so investors should be on the lookout for a scenario where this puts a cap on the upside for major currencies such as the euro and the pound.