Warsh's Hawkish Stance Puts Aussie's Rally at Risk. Forecast as of 31.08.2026

Expectations that the RBA would resume its rate-hiking cycle, combined with the Australian dollar's status as a commodity currency, had allowed the aussie to steadily strengthen. However, Kevin Warsh's hawkish speech at Jackson Hole turned the outlook on its head. Let's analyze the situation and develop a trading plan for the AUD/USD pair.Major Takeaways A cash rate hike is expected in September or November. The Fed's intention to raise rates triggered a decline in the AUD/USD pair. The aussie r