In the early European session on Friday, AUD/USD gains strength around 0.6900. In May, June, and August of 2026, the RBA is predicted by Westpac analysts to raise the cash rate by 25 basis points. Later on Friday, traders prepare for the US employment data for March. During Friday’s early European trading hours, the AUD/USD pair gains ground at 0.6900. The Reserve Bank of Australia’s hawkish stance supports the Australian dollar versus the US dollar.
The Good Friday holiday is likely to result in low trading volumes. Later on Friday, traders will watch the US jobs report for March. Because of the tight labor market and rising oil prices, market expectations for the May meeting point toward another possible rate hike. According to Westpac analysts, the RBA will raise interest rates three more times in 2026. As a result, the cash rate would reach 4.85%, the highest level since November 2008.
However, traders may decide to switch to a safe-haven currency like the US dollar due to the rising crisis in the Middle East, which includes the facto closure of the Strait of Hormuz. Iran is under pressure from US President Donald Trump “to make a deal” following the destruction of a bridge close to Tehran by a missile strike. Washington’s latest attacks on civilian infrastructure, according to Iran’s foreign minister Abbas Araghchi, “convey the defeat and moral collapse of an enemy in disarray” and won’t force the nation to back down.
On Friday, the US employment statistics for March will be released. In March, an increase of 60,000 jobs is anticipated in the Nonfarm Payrolls. In the meantime, it is predicted that the unemployment rate will remain constant at 4.4% for the same time frame.