AUD falls on lower chance of rate hike, GYG jumps after ditching US | Finance Report | ABC NEWS

Added: 2026-05-24

[00:00:00]The Aussie dollar hit a four-year high last week before it tumbled and briefly fell below 71 US cents a couple of days ago. Partly because of an emerging view that interest rates may not need to rise much further.

[00:00:12]Earlier this week, markets were betting the Reserve Bank would definitely lift rates again by September. But today, the odds of that dropped to 64% though a pre-Christmas rate hike still looks pretty likely.

[00:00:24]Now, what's behind this change was yesterday's job figures showing the unemployment rate rising to its highest level in 4 1/2 years, which will probably keep the RBA on hold for at least a few months. So, that's why the Aussie dollar has been drifting lower.

[00:00:37]Meanwhile, it was a decent day for the ASX which went up by 0.4% as investors decided to take Donald Trump's assurances about an imminent peace deal with Iran at face value.

[00:00:48]While insurance and property stocks fell, today's best performer was Guzman y Gomez. But that's after the fast food chain lost almost half its value in 1 year because investors are not happy about the company burning through so much cash to try and expand into the US and having very little to show for it.

[00:01:05]So, that's why GYG's decision today to close all eight of its American stores was met with thunderous applause.

[00:01:12]There's also the fact you could pretty easily find authentic Mexican food in the US, so a Mexican-themed restaurant might struggle a little.

[00:01:21]Now, in commodities, oil prices jumped after Iran's supreme leader said his country's supply of enriched uranium is not going anywhere. But share markets overseas are still optimistic about the idea that the Middle East war will somehow end soon.

[00:01:35]And that's finance.