The Australian dollar rose in the Asian market on Friday against a basket of global currencies, extending gains for the third consecutive day against its US counterpart, recording its highest level in ten months, and heading toward its biggest weekly gain since last April.

This strong weekly gain is supported by the rise in global commodity and base metal prices, in addition to renewed inflationary pressures on policymakers at the Reserve Bank of Australia, which has led to reduced expectations of an Australian interest rate cut in September.

Price Overview

Todays exchange rate of the Australian dollar: The Australian dollar rose against its US counterpart by about 0.15% to 0.6669, the highest since November 2024, from the opening price of 0.6659, and recorded the lowest level at 0.6656.

On Thursday, the Australian dollar recorded a rise of 0.75% against the US dollar, its second consecutive daily gain, following the release of moderate inflation data in the United States.

Weekly Trading

Throughout this weeks trading, which officially ends with todays settlement, the Australian dollar is up so far by about 1.75% against the US dollar, on the verge of achieving a third consecutive weekly gain and the biggest weekly gain since last April.

Global Commodity Prices

Global commodity and metal prices have recently witnessed a strong wave of increases, driven by rising demand from major economies, primarily China and the United States, along with geopolitical tensions that have boosted investor appetite for basic commodities as a safe haven.

This rise has a positive impact on the Australian economy, which is one of the largest exporters of iron ore, coal, and gold, as it helps strengthen the trade surplus and increase revenues for companies operating in the mining sector.

It also provides strong support for the government budget through higher revenues from fees and taxes, giving the Australian economy greater resilience in facing global inflationary pressures and maintaining stable growth rates.

Australian Interest Rates

Recent data released in 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 inflation data, the pricing of the likelihood of the Reserve Bank of Australia cutting interest rates by 25 basis points in September dropped from 30% to 22%.

To reprice these expectations, investors are awaiting more data on inflation, unemployment, and wages in Australia before the upcoming September 30 meeting.