The Australian dollar rose in the Asian market on Thursday against a basket of global currencies, maintaining gains for the second consecutive day against its US counterpart, trading near the ten-month high recorded in earlier dealings yesterday. This rise came on the back of higher commodity and base metal prices in global markets.

The Australian dollars gains were also supported by renewed inflationary pressures on policymakers at the Reserve Bank of Australia, which led to a decline in the odds of an interest rate cut in September.

Price Overview

Exchange rate of the Australian dollar today: The Australian dollar rose against the US dollar by about 0.15% to (0.6621), from todays opening price at (0.6613), recording the lowest level at (0.6608).

On Wednesday, the Australian dollar gained 0.45% against the US dollar, its third gain in the last four days, recording a ten-month high at 66.36 cents, amid strong buying of the Australian currency.

Global Commodity Prices

Global commodity and metals prices have recently witnessed a strong wave of gains, driven by rising demand from major economies, particularly China and the United States, in addition to geopolitical tensions that have reinforced investors shift toward basic commodities as a safe haven.

This rise reflects positively on the Australian economy, which is one of the worlds largest exporters of iron ore, coal, and gold. It contributes to strengthening the trade surplus and boosting revenues for companies operating in the mining sector.

It also provides strong support for the governments budget through higher tariff and tax revenues, giving the Australian economy greater flexibility to withstand global inflationary pressures and maintain stable growth rates.

Australian Interest Rates

Recent data from Sydney showed inflation in the country rising to its highest level in a year, renewing inflationary pressures on policymakers at the Reserve Bank of Australia.

Following the above inflation data, market pricing of a 25-basis-point interest rate cut by the Reserve Bank of Australia in September fell from 30% to 22%.

To reprice those odds, investors are awaiting further data on inflation, unemployment, and wages in Australia ahead of the upcoming September 30 meeting.