Overview
- The Australian dollar finished the year at about 66.95 US cents after rebounding roughly 12% from an April 2025 low near 59.22 US cents.
- Economists cite a weaker US dollar, firmer commodity prices and interest‑rate differentials, with a relatively hawkish RBA versus prospects for easier US policy, as the main supports.
- Precious metals rallied in 2025, with gold up about 65% and silver up 182%, adding to broader commodity‑linked support for the currency.
- Analysts expect limited but further appreciation, generally toward 69–70 US cents, with some seeing potential to the low‑70s if US easing persists.
- Key risks include China’s slowdown and renewed trade tensions, with additional volatility linked to US policy moves under President Trump, while importers and travellers benefit from strength that many exporters would prefer to see stay below 70 US cents.