The Australian dollar held firm last week, with AUD/USD finishing at 0.7247, a gain of 0.62%, marking its fifth weekly gain in six weeks. The currency was supported by robust risk sentiment, higher interest rates, and strong commodity prices, according to market analysts.
Attention now turns to the Australian Federal Budget, scheduled for release on May 11, 2026. The budget is expected to outline the government's fiscal strategy amid ongoing global economic uncertainty and domestic inflation pressures.
Key factors supporting the Aussie include the Reserve Bank of Australia's recent rate hikes and continued demand for Australian commodities such as iron ore and coal. However, traders remain cautious ahead of the budget announcement, which could impact market sentiment.
Analysts suggest that the budget's focus on cost-of-living relief and infrastructure spending may provide further support for the currency, but any unexpected fiscal measures could lead to volatility.
