AUD/USD Forecast: Next Week, Coming Days and Long Term

AUD/USD forecast 2026: what the banks expect

For the end of 2026, MUFG expects 0.70 and Westpac 0.72. Westpac names 0.72 for December in its Market Outlook of 15 October 2026, the Japanese bank MUFG 0.70 for the end of the fourth quarter in its currency outlook of 1 October 2026. In addition, ING names 0.70 three months from 12 October, so roughly for January 2027. All three are just above the weekly close of 0.6945.

Forecasts from 1 to 15 October 2026; sources in the text.

The banks give different reasons for their numbers. MUFG sees the Aussie held back at first, because the RBA is likely to pause after four hikes, and expects a gradual rise in 2027. Westpac, in contrast, expects another RBA hike to 4.85 percent in November and a broadly weaker US dollar, but says the turn could take until early 2027.

Bank forecasts are third-party assessments, not a trading recommendation. They depend on assumptions about interest rates and the economy and are revised regularly. Karsten’s charts, in contrast, show the current situation at the support cluster around 0.6950.

AUD/USD forecast 2027 and 2028: what the banks expect

For 2027, the banks selected here agree on about 0.73. Westpac expects 0.73 in December 2027, MUFG 0.73 at the end of the third quarter of 2027 and ING 0.73 twelve months after 12 October 2026. The Bloomberg consensus that MUFG prints in its October outlook is also 0.73 for the third quarter of 2027.

For 2028 we found only one bank forecast in the sources we checked. Westpac names 0.73 for March and 0.72 for December 2028. At the same time, Westpac expects the RBA to lower its cash rate step by step to 3.85 percent by mid-2028. A single price target is an assessment, not a consensus.

AUD/USD forecast 2030: what purchasing power parity says

Purchasing power parity is the exchange rate at which a comparable basket of goods and services costs the same in two countries.

In the sources checked for this article we found no bank forecast for 2030. There are valuation yardsticks. In its World Economic Outlook of October 2026, the International Monetary Fund puts purchasing power parity for Australia at 1.444 Australian dollars per international dollar in 2030, and at 1.421 for 2026. Converted, that corresponds to an AUD/USD value of about 0.69 for 2030 and about 0.70 for 2026.

No price target follows from this. At the weekly close of 0.6945, the Aussie is close to this valuation yardstick derived from purchasing power parity. Exchange rates can drift away from purchasing power parity for years; it is a yardstick, not a timetable.

What is the AUD/USD currency pair?

AUD/USD is the currency pair made of the Australian dollar and the US dollar. The rate says how many US dollars one Australian dollar costs.

Traders call the pair the Aussie. It is one of the most traded pairs in the currency market. When the rate rises, the Aussie gains and the US dollar loses value. The currency has floated freely since 12 December 1983, when Australia gave up its fixed exchange rate. Anyone trading the pair needs a stop for every position.

What moves the AUD/USD rate

The rate gap is the distance between the policy rates of two currency areas. The wider it is, the more attractive the higher-yielding currency becomes for investors.

For the Aussie, the rate advantage currently lies on the Australian side. The Reserve Bank of Australia unanimously decided on 29 September 2026 to raise its cash rate by a quarter point to 4.60 percent, effective from 30 September (RBA cash rate table). It was the fourth hike in 2026. The US Federal Reserve has been at 3.75 to 4.00 percent since 17 September. The Australian policy rate is therefore 0.60 percentage points above the upper end of the US target range.

The rate advantage alone did not carry the price this autumn. After the RBA decision the Aussie fell, according to FXStreet and ActionForex, because the governor’s comments were cautious. How the rate gap looks against the franc is shown in the USD/CHF forecast. Against the yen, the rate advantage lies with the US dollar; the levels are in the USD/JPY forecast.

The second driver is commodities. Australia exports mainly iron ore, coal and gold, and its most important customer is China. Stronger Chinese construction can support iron ore demand and the Aussie. That is why the pair often reacts strongly to Chinese economic data. How the precious metal is doing is shown in the gold price forecast.

Commodity prices are only one influence on AUD/USD. The connection is real, but it does not explain the whole price move. Anyone forecasting the Aussie through commodities alone misses the rate side and the risk side.

The Aussie also counts as a risk currency. It is often in demand in calm markets and often weakens when investors avoid risk. In the Covid crash of March 2020 it dropped below 0.56. The second big commodity currency is the Canadian dollar, which reacts to crude oil instead of iron ore. Its levels are in the USD/CAD forecast, and the next date of the Canadian central bank is in the Bank of Canada rate decision.

How this forecast is made

The charts are my own, with FXCM price data, from the daily to the yearly chart. Each shows the highs and lows of earlier years that matter for its horizon, plus the trend lines I watch. The charts were made with TradingView, and this page follows our editorial policy. Christian Möhrer reviews every version.

Conclusion: AUD/USD has to defend the support cluster

As an active trader since 1980, I see AUD/USD at an important support. This year the pair has exceeded the highs of 2023, 2024 and 2025, but it is pulling back clearly from the 2026 high at 0.7278. Around 0.6950 I see a support cluster, and on the weekly chart the orange diagonal support line was tested as well.

If this cluster holds, a new upward move is quite possible. If the diagonal support line is broken, a further decline towards the 2025 high at 0.6728 would be possible. The green uptrend line on the monthly chart was already broken in September.

Please note

The scenarios are a personal assessment based on experience. They summarize possible price developments for each time frame and are not a certainty. This is market analysis, not investment advice. Trading currency pairs carries the risk of losing your capital.

This forecast is translated from the German edition on kagels-trading.de.

How our forecasts are made and reviewed: How we work.