Australian and New Zealand dollars extend losses as US rate-hike bets weigh on risk currencies

The Aussie slipped to $0.6892 on Wednesday, continuing a bruising month of declines. Traders are increasingly pricing in tighter US monetary policy, leaving commodity-linked currencies vulnerable to further downside.

By Handelsavisen Newsroom · Automated 2026-07-01 06:09 UTC · 1 min read

The Australian and New Zealand dollars extended their recent sell-off on Wednesday, pressured by a broad-based rally in the US dollar.

The Aussie fell 0.4% to trade at $0.6892, marking another step lower for the currency after a difficult month of losses.

2% to as low as $0.5702 on Tuesday, marking a 2-1/2-month low and setting up a fifth consecutive session of declines.

Market participants are increasingly wagering on near-term US rate hikes, a shift that has intensified selling pressure across risk-sensitive assets.

The move follows a sharp decline on Tuesday, when the Australian dollar slid to a fresh three-month low of $0.6867.

The currency is now trading dangerously close to its March trough of $0.6834, a level that has historically provided support.

Meanwhile, the New Zealand dollar also faced headwinds, dipping 0.2% to as low as $0.5702 on Tuesday, marking a 2-1/2-month low and setting up a fifth consecutive session of declines.