Australian dollar (AUD) market outlook and exchange rates

AUD Market Update

12 Aug 2026 • 00:27 GMT

AUD/USD 0.7064

The Australian dollar (AUD) remains close to its recent average against the US dollar, trading at around 0.7064. It has been moving within a narrow range, just above its 3-month average, and has shown resilience despite broad USD strength. Recent US dollar support, driven by expectations of Federal Reserve rate hikes and a risk-averse market environment, has kept the EUR and GBP weaker against the dollar, with little influence on the AUD's levels.

For now, the AUD is testing key support around 0.7000, a level closely watched for potential breakout signals. If the AUD can hold above this point, there’s room for a slight rebound, especially if US rates are perceived to peak or US market sentiment shifts. Conversely, ongoing US dollar strength could press the AUD lower, especially if US energy and inflation concerns remain front and center.

Looking ahead, traders will keep an eye on US economic data and Fed policy signals, as well as upcoming Australian inflation reports. A sustained move above 0.7000 might encourage further gains, but heightened US dollar momentum could cap the upside for now.