Australia's policy interest rate held at 4.35% in August 2026, unchanged from July 2026. The rate has remained at this level for three consecutive months, following a rise from 4.1% in April and May 2026. Over the past year, the rate has climbed from 3.6% in August 2025, with increases recorded in February, March, and May 2026. The current level is well below the all-time high of 42.5% recorded in June 1980, and remains above the record low of 0.1% set in April 2022, according to the Bank for International Settlements.

Australia Holds Rate at 4.35% in August

The Australian dollar strengthened to 1.4080 per USD in August, from 1.4361 in July. The August reading marked a decline after two consecutive monthly increases and was down from 1.5405 a year earlier. It remained below the all-time high of 1.99608 (April 2001) and above the all-time low of 0.67227 (June 1974), according to the International Monetary Fund.

Australia FX vs USD Falls to 1.4080

Australia's consumer confidence index rose to -11 in August from -16 in July, according to the OECD. The reading remains negative but improved for the first time after four consecutive monthly declines. The index is 9 points above its year-ago level of -2. It stands 39 points below the all-time high of 28 recorded in January 2005 and 25 points above the all-time low of -36 from November 1990.

Australia Consumer Confidence Rebounds in August

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