Australian Dollar Drops to US70.83¢ as Markets Turn Cautious

The Australian dollar fell to US70.83¢ on August 19, 2026, down about 1.3 cents from April's near four-year peak of US71.78¢. Two forces drove the slide: government borrowing costs at their highest in decades, and a sharp sell-off in AI-related shares. Both spooked investors into safer holdings. The drop undid earlier gains from a softer US dollar and higher Australian interest rates. ASX losses were expected at market open.