Australian Dollar Breaks 0.70 Level Following Hawkish RBA Inflation Comments

Key Facts

1The AUD/USD pair jumped to a three-week high, breaking above the 0.70 psychological resistance level.

2An RBA official commented on a worsening inflation outlook, strengthening the central bank's hawkish stance.

The AUD/USD pair surged by nearly 0.5% to break above the 0.70 psychological resistance level, reaching its highest point in three weeks. ActionForex reported that the rally was triggered by comments from a Reserve Bank of Australia official regarding a worsening inflation outlook, which bolstered the central bank's hawkish monetary policy stance.

The hawkish rhetoric fueled a technical breakout supported by strong daily momentum, even as some indicators suggested overbought conditions. This upward movement follows recent labor market data from October 15, 2026, which showed the Australian unemployment rate holding steady at 4.7% despite a contraction in overall employment change of -39.3k.

Market participants are now looking toward the release of Australia's Monthly CPI Indicator on October 28, 2026, with forecasts projecting a reading of 4.1%. The Trimmed Mean CPI, a key inflation gauge for the RBA, is also scheduled for release on the same date and will likely influence the central bank's next policy steps.