Aussie Dollar Rises Toward Three-Year High on Yield Appeal

The Australian dollar is nearing its strongest level in three years propelled by the central bank’s hawkishness and as the threat of a joint US-Japan yen defense weighs on the greenback.

The Aussie has gained nearly 4% in 2026 to around 69 US cents to be among the top three Group-of-10 currency performers so far this year. It may climb to 70 US cents by end-March, a level last seen in early 2023, according to strategists from Commonwealth Bank of Australia and Westpac Banking Corp.