Australian dollar (AUD) market outlook and exchange rates

AUD Market Update

03 Aug 2026 • 00:27 GMT

AUD/USD 0.7047

The Australian dollar is trading near 30-day highs around 0.7047 against the US dollar, close to its three-month average. Recent trading has been quite stable within a 5.4% range between 0.6887 and 0.7258. Market attention is shifting as the USD strengthens ahead of the upcoming FOMC meeting, with the dollar regaining ground after some recent weakness. Expectations are for a hawkish tone from the Fed, which could support the dollar further.

While the AUD remains above key levels, investor sentiment is cautious ahead of Australian CPI data and global economic decisions from the US and China. The currency's short-term trend will likely hinge on these developments, with a break above 0.7000 potentially pushing the AUD higher if buoyed by regional fund flows and commodity price strength. Conversely, any signs of US rate hikes or global geopolitical tensions could limit gains. Overall, the AUD remains stable but watchful, with short-term fluctuations driven by global cues.