Australian Dollar Hits Nine-Month High Amid Market Optimism

The Australian dollar has just hit a nine-month high against the US dollar, trading at 65.82 US cents this morning, and it could hit even higher. The rally puts it on course to potentially challenge the September 2024 peak of 69.42 US cents.

Helping the climb? Strong investment has helped boost the Aussie dollar, which has gained 4 US cents against the greenback since the start of the year.

The rebound comes despite market jitters following US President Donald Trump’s sweeping tariff measures announced in April, which prompted investors to pull billions from equities. On Tuesday, Trump escalated tensions further, threatening a 35 per cent tariff on Canadian imports and raising concerns that Australian exports could also be hit.

If the Australian dollar breaks past its recent July highs, it would mark the strongest level since November 2023.

The currency’s rise follows the Reserve Bank of Australia’s decision to hold the official cash rate steady at 3.85 per cent, surprising economists and adding pressure on already stretched mortgage holders.