Forecasters see Australian dollar falling up to 3.7% by year-end
What's next: Australia growth data this week could cool rate-hike bets that helped lift the currency more than 3.5% since July.
The Australian dollar’s two-month rally may be running out of steam, with several closely watched forecasters expecting the currency to weaken by the end of 2026. SB1 Markets projects a drop of as much as 3.7%, while Banco Santander and Danske Bank both see the Aussie slipping to 70 US cents from 71.64 US cents at Friday’s close. The currency has climbed more than 3.5% since early July as sticky inflation drove speculation that the Reserve Bank of Australia could raise rates as soon as next month. That view may be tested by economic growth figures due this week. Analysts cited stretched technical signals, the RBA potentially staying on hold into Q4, and a firmer US dollar after Federal Reserve Chair Kevin Warsh struck a hawkish tone at Jackson Hole.