Australia’s interest-rate gap with the US is set to turn positive in the coming months, potentially delivering a boost to the local dollar as domestic assets become more appealing, according to AMP Ltd.
The Aussie may rise to 70 US cents in the first half of 2026 if the Reserve Bank of Australia remains on hold while the Federal Reserve eases further, said Shane Oliver, chief economist and head of investment strategy at AMP. The currency last reached that level in February 2023 and traded at around 65.85 cents in the early Asian session on Wednesday.