EL7.AI
ForexMedium•3 November 2026•
1 min read

US Dollar Drifts Amid Political Risks as Aussie Dips Despite RBA Hike

Key Facts

1The US Dollar drifted as markets weighed geopolitical risks in the Middle East and US midterm election outcomes.
2The Australian Dollar dipped following a widely expected interest rate hike by the Reserve Bank of Australia.
3The USD/JPY pair reached 158.00, marking its highest level since October 29.

The US Dollar drifted as markets weighed geopolitical risks in the Middle East and the outcomes of the US midterm elections. Reuters reported that the USD/JPY pair reached 158.00, marking its highest level since October 29, 2026, while the Australian Dollar dipped following a rate hike by the Reserve Bank of Australia.

The Reserve Bank of Australia (RBA) raised interest rates to 4.85% on November 3, 2026, meeting market forecasts after a previous rate of 4.6%. Traders are currently balancing diplomatic shifts and US domestic political risks against central bank policy, as Australian annual inflation was recorded at 3.7% in October 2026.

The Australian Balance of Trade is scheduled for release on November 5, 2026, with a forecast of 1.2 billion, which may provide further clarity on economic performance following the recent monetary policy shifts.

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