The Australian dollar extended its recent decline to around $0.694, hovering near three-month lows as renewed US–Iran tensions weighed on global risk appetite. Investors moved into the safe-haven US dollar, while oil prices surged after the US launched a new wave of strikes against Iran and revoked a license that had allowed Tehran to sell oil. Those actions followed attacks on tankers in the Strait of Hormuz and intensified concerns about fresh disruptions to global energy supplies.
At the same time, RBA Assistant Governor Sarah Hunter said recent oil price shocks have dented consumer and business confidence but stressed that the Australian economy remains resilient. She reiterated that the central bank stands ready to act as necessary to return inflation to target and sustain full employment. Even so, markets still largely expect the Reserve Bank to leave the cash rate unchanged in August after three hikes so far this year, and the probability of another move has softened, with a November increase now priced at roughly 40%.
