Commonwealth Bank Travel Money Compared

AUDUSD holds above its 90-day avg in the upper 3-month range. RBA signals possible tightening in 2026 while the Fed eyes cuts toward neutral, keeping AUD bid if risk appetite holds. AU CPI and LFS due this month could swing near-term direction. Bias bullish-to-range-bound, as AUD sits above its 90-day average and in the upper half of the 3-month range. Key drivers - Rate gap: The RBA (Reserve Bank of Australia) is signaling possible tightening in 2026 while the Fed (Federal Reserve) is expected to cut toward neutral in 2026, widening the policy gap in AUD's favour, and this should lift the currency if risk appetite holds. - Risk/commodities: China's slower inflation points to softer demand for Australian exports, weighing on iron ore and commodity-linked support for AUD, though a stabilizing iron ore price can curb losses. - Upcoming macro: AU CPI (consumer price index) and Labour Force data due this month. These releases could swing near-term direction. Range the pair is likely to hold within the recent 3-month range, with a gentle drift toward the high end for now. What could change it - Upside risk: A hotter-than-expected Australian inflation print or a clearer signal from the RBA of policy tightening. - Downside risk: Stronger-than-expected US data that reinforces USD strength