Australian dollar forecast
Find out about the outlook for the AUD in 2024 and the key factors driving its performance.
Key takeaways
- The Australian dollar was trading at about 71 US cents in late September 2026, after peaking just above 72 cents earlier in the month.
- Major banks expect the AUD to finish 2026 somewhere between 71 and 75 US cents.
- Interest rates and commodity prices have the biggest impact on the AUD, along with global investor sentiment.
Australian Dollar Predictions for 2026
The Australian dollar was trading at about 71 US cents in late September 2026. Most of the big banks expect it to rise a little further over the next year. The following forecasts are as published and are updated regularly.
- NAB's forecast has the AUD at 0.73 USD by December 2026. It then expects a slight fall to 0.71 USD by June 2027 as the US dollar steadies. NAB says higher commodity prices and expected RBA rate rises are keeping the dollar above 70 cents.
- ING is the most optimistic of the banks and has raised its outlook during 2026. It now expects the AUD/USD to reach around 0.75 by the end of the year.
- Westpac's August 2026 outlook expects the AUD to rise to 0.72 USD by December 2026 and 0.73 USD by June 2027.
- Commonwealth Bank expects the dollar to rise to as high as 73 US cents in 2026. It says the RBA's higher cash rate compared with the US, and a stronger global economy, are helping the Aussie.
- MUFG (August 2026) forecasts 0.71 for Q4 2026 and 0.73 for Q2 2027.
Key factors impacting the Australian dollar
There are several key factors driving the performance of the Australian dollar, the major ones include:
- RBA interest rate decisions. After holding the cash rate at a record low of 0.10% from November 2020, the Reserve Bank lifted it to 4.35% by November 2023, cut it back to 3.60% over 2025, then raised it again in February, March and May 2026. The cash rate has been 4.35% since May 2026, and the Board left it unchanged at its meeting on 11 August 2026. Rate rises tend to increase foreign investment demand for the AUD, which helps push the value of the Aussie dollar higher.
- Inflation. The Reserve Bank aims to keep annual consumer price inflation between 2 and 3%, on average, over time. When inflation runs above target, the RBA may raise rates, which can support the Aussie dollar. But if high inflation persists and erodes purchasing power, it can weigh on the currency over the longer term.
- Economic slowdown. Conflict in the Middle East and higher oil prices have clouded the global economic outlook. A sharper slowdown could reduce demand from China and other Asian countries for Australia's key exports, pushing the value of the Australian dollar down.
- Mining. Commodities are a major driver of the Australian economy, with iron ore, coal, LNG and other resources making up around 60% of the country's exports. Rising demand for commodities can push the AUD up, while falling prices can have the opposite effect.
- Farming. Agriculture is another important driver of the Australian economy, making up 10.8% of the nation's goods and services exports in 2023-24. Climate change could affect the farming industry in the years ahead, and the legislated phase-out of live sheep exports by sea from May 2028 will also affect the sector.
Compare money transfer services
{"niche":"AUFMT"}
Compare other products
We currently don't have that product, but here are others to consider:
How we picked theseFinder Score for money transfer
We review money transfer providers for different features to assign them a score out of 10. The higher the score, the more competitive the product.
How has the Australian dollar performed?
The Aussie dollar was on a downward trajectory for most of 2023. After peaking at around 0.715 USD in late January and early February 2023, it hit yearly lows of around 0.63 USD in October before mounting a small recovery. It has since climbed above those 2023 highs: the Reserve Bank's daily exchange rate table put the Australian dollar at US$0.7232 on 9 September 2026, but it has eased slightly since.
Frequently asked questions
Sources
More resources on Finder
Ask a question
More guides on Finder
-
AUD to INR forecast
Your guide to the key factors affecting the AUD to INR forecast for the year ahead.
-
AUD to GBP forecast
Your guide to what will happen to the AUD/GBP exchange rate in 2023 and beyond.
-
Top 10 strongest currency in the world
Your guide to the 10 most valuable currencies compared to the Australian dollar.
-
Buying a property in the UK
The detailed guide to buying a property in the UK as a foreigner.
-
Buying a property in New Zealand
If you want to buy a property in NZ, here’s what you need to know before signing on the dotted line.
-
Xe vs OFX money transfers
Discover how XE and OFX stack up against each other in terms of fees, exchange rates, and transfer speeds.
-
Wise (TransferWise) review
Wise can help you make a fast, secure transfer at the mid-market rate.
-
Xe vs Wise (TransferWise)
A comparison of the money transfer services offered by Xe Money Transfer and Wise.
-
Alternatives to OFX
If OFX isn't offered in your country or you're shopping around, compare its rates, fees and speed against the competition.
-
The concise guide to international bank drafts
If you’re looking for a cheap and secure way to send money overseas, an international bank draft could be for you.