The exchange rate between the Australian dollar (AUD) and Israeli new shekel (ILS) has shown signs of stability, recently trading at 2.1296, which is 2.4% below its three-month average of 2.1823. Experts have noted a narrow trading range of 5.7% from 2.1191 to 2.2389, reflecting modest fluctuations in market sentiment.
Recent forecasts for the AUD suggest that its performance is heavily influenced by several factors. Analysts have highlighted that the Reserve Bank of Australia's previous interest rate cut in August 2025 has left the AUD under pressure, particularly amid concerns regarding inflation and commodity prices, which constitute the backbone of Australia's export-driven economy. The upcoming release of China's manufacturing PMI adds to the cautious outlook, as a slowdown in Chinese growth could dampen demand for Australian exports, further affecting the AUD's value.
On the other hand, the ILS has exhibited strength recently, attributed to a decline in Israel's inflation rate to 2.5% in September 2025, which could prompt potential interest rate cuts by the Bank of Israel. This strengthening of the shekel is also linked to easing geopolitical risks, which has improved investor sentiment and contributed to its appreciation against the US dollar by approximately 9.3% in the second quarter of 2025.
Given the dynamics at play, currency analysts anticipate that the performance of the AUD in relation to the ILS will be significantly impacted by broader global economic factors, including trade tensions and market anxiety. As the situation evolves, the interplay between Australia's commodity prices, economic policies, and Israel's inflation trends will continue to shape the AUD/ILS exchange rate in the near term.
