Soaring oil prices suppress risk appetite, with the Australian dollar hitting a more than one-week low and the New Zealand dollar reaching a one-and-a-half-month low.

1. Driven by a new supply disruption in the Gulf region that sent oil prices soaring, expectations for further global monetary tightening have intensified, dampening risk appetite. The Australian dollar against the US dollar fell by as much as 0.47% to 0.7135 in Asian trading on Monday, marking the lowest level since September 2 and moving further away from the four-month high of 0.7237. It had already declined by 0.4% last week, with support levels located around 0.7120 and 0.7070. The New Zealand dollar against the US dollar dropped by as much as 0.58% to 0.5778, hitting its lowest since the end of July and continuing the previous week's 1.2% decline, with major support near 0.5760 and resistance around 0.5900.2. Joseph Capurso, head of international economics at Commonwealth Bank of Australia, stated that the Australian dollar against the US dollar is expected to continue falling this week and may test the weak support level of 0.7070. He also pointed out that if the Federal Reserve raises interest rates on Wednesday, the US dollar would receive a moderate boost; if not, the US dollar could drop by more than 1%.3. The escalation of tensions in the Gulf region is one of the risks previously highlighted by the Reserve Bank of Australia. The RBA has raised rates three times so far this year and noted that related risks could prompt further policy tightening. The market currently expects an 80% probability of a rate hike at the RBA's September 28-29 policy meeting. RBA Governor Bullock will testify in parliament on Friday, and investors will be closely watching for signals that may pave the way for a rate increase.4. New Zealand will release its second-quarter GDP data on Wednesday. Interest rate swap markets currently suggest there is a fifty-fifty chance that the Reserve Bank of New Zealand will raise rates for the third time this year in October.