Iran worries hit stocks and bonds
Global markets were weaker overnight, with further notable losses in bond markets, after US President Donald Trump rejected a new peace proposal from Iran.
Oil prices rose, the Dow Jones fell 0.7%, while the US 10-year Treasury yield climbed from 5.16% to 5.24%, a new multi-decade high.
The US dollar was mostly stronger, with its biggest gains in Europe.
EUR/USD fell 0.2%, while USD/CHF rose 0.4%. GBP/USD was unchanged.
All eyes on RBA at 2.30pm AEST
The Australian dollar was lower again on Monday, falling 0.1% and adding to last week’s 1.4% decline as markets looked ahead to today’s Reserve Bank of Australia decision.
Financial markets see a 93% chance of a rate hike. All 43 economists surveyed by Bloomberg last week expect the RBA to lift rates by 25 basis points to 4.60%.
RBA Governor Michelle Bullock provided a clear signal to markets last week when she warned inflation remains too high and risks becoming embedded.
Today’s expected hike would lift the cash rate to 4.60%, its highest level since 2011.
September 2026 chart showing AUDUSD at 200-day MA support
APAC currencies rebound from last week’s losses
Across APAC, the US dollar was mostly lower, weighed down by losses in USD/JPY.
USD/JPY fell after Japanese policymakers flagged concerns about the weakening yen, although the pair later recovered to finish broadly unchanged on the day.
NZD/USD gained 0.1%, rebounding near major support at 0.5600. The pair has traded largely within a 0.5600 to 0.6000 range for most of this year.
USD/CNH fell 0.2% as the pair resumed its decline after last week’s rebound from three-year lows. USD/SGD also edged lower.
Aussie dollar falls again
Table: seven-day rolling currency trends and trading ranges
Key global risk events
Calendar: 21 to 26 September
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*The FX rates published are provided by Convera’s Market Insights team for research purposes only. The rates have a unique source and may not align to any live exchange rates quoted on other sites. They are not an indication of actual buy/sell rates, or a financial offer.
