AUD/USD Declines Toward 0.7000 as Geopolitical Tensions Weigh on Sentiment

Key Facts

1The AUD/USD pair declined by 0.21% to trade around 0.7010 on Thursday.

2Middle East tensions overshadowed the Reserve Bank of Australia's hawkish interest rate outlook.

The AUD/USD pair declined by 0.21% to trade around 0.7010 on Thursday, October 22, 2026. FXStreet reported that the Australian Dollar retreated from its monthly highs against the US Dollar, moving toward the 0.7000 psychological level.

Geopolitical tensions in the Middle East overshadowed the Reserve Bank of Australia's hawkish interest rate outlook. Risk-off sentiment driven by these tensions outweighed domestic factors and increased rate hike bets, impacting the currency's performance.

Australia is scheduled to release its Monthly CPI Indicator on October 28, 2026. On the same day, the RBA's preferred inflation measures, including the Trimmed Mean and Weighted Median CPI, will be published, potentially influencing future rate decisions.