Australian dollar (AUD) market outlook and exchange rates

AUD Market Update

01 Aug 2026 • 01:06 GMT

AUD/USD 0.7014

The Australian dollar (AUD) is currently hovering near its recent levels against the US dollar, trading at about 0.7014, just below its 3-month average of 0.7053. The AUD has been relatively stable within a 5.4% range from 0.6887 to 0.7258. Recently, the AUD tested the key 0.7000 level, supported by solid commodity prices and interest rate differentials. However, the dollar's recent strength as the US prepares for the Federal Reserve’s upcoming rate decision has kept a lid on gains.

The US dollar has regained some momentum ahead of the FOMC meeting, approaching its year-to-date highs, which puts pressure on the AUD. Any hints from the Fed about future rate hikes could influence USD direction, impacting the AUD/USD pair. Meanwhile, the Reserve Bank of Australia’s upcoming economic data, particularly inflation figures, will be crucial for setting expectations around monetary policy.

In other currency pairs, the AUD remains near stable levels against the euro and Canadian dollar but has drifted slightly lower against the yen and British pound, both near multi-week lows. Overall, traders should watch for US dollar movements and upcoming Australian data, as these will likely be the key drivers for the AUD in the coming days.