--- title: "The Australian dollar exchange rate hits a 15-month high! Metal frenzy boosts it, will it break the 0.7 barrier in 2026?" type: "News" locale: "en" url: "https://longbridge.com/en/news/271874276.md" description: "The Australian dollar to US dollar exchange rate reached a 15-month high, reported at 0.6752, due to rising commodity prices and market expectations for an interest rate hike by the Reserve Bank of Australia. Analysts pointed out that the surge in prices of commodities such as gold, silver, and copper is beneficial for the Australian economy, driving the Australian dollar up. The market expects the Reserve Bank of Australia to raise interest rates once in 2026, with Deutsche Bank predicting the Australian dollar to US dollar exchange rate will reach 0.69 in the second quarter of 2026 and 0.71 by the end of the year" datetime: "2026-01-07T03:57:29.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/271874276.md) - [en](https://longbridge.com/en/news/271874276.md) - [zh-HK](https://longbridge.com/zh-HK/news/271874276.md) --- # The Australian dollar exchange rate hits a 15-month high! Metal frenzy boosts it, will it break the 0.7 barrier in 2026? Investment Insights - The surge in commodity prices combined with expectations of interest rate hikes by the Reserve Bank of Australia suggests that there is still room for the Australian dollar to rise in 2026. On January 7, the AUD/USD rose for the fourth consecutive day, reporting at 0.6752, reaching a new high since October 2024. Over the past two months, the AUD/USD has accumulated a 4% increase, leading G10 currencies. Analysis indicates that the soaring commodity prices and rising market bets on interest rate hikes by the Reserve Bank of Australia are the main drivers behind the appreciation of the Australian dollar. \[Source: TradingView; AUD/USD trend over the past three months\] 1. Surge in Commodity Prices Recently, prices of gold, silver, copper, aluminum, and iron ore have skyrocketed. As a major resource-exporting country, rising commodity prices are beneficial for the Australian economy, further boosting the Australian dollar. Copper prices have surpassed $13,000 per ton, setting a historical high. Silver has broken through $80 per ounce, and gold has reached $4,500 per ounce. Iron ore and aluminum have increased by 4% since the beginning of 2026. Analysis suggests that the commodity price upcycle is likely to continue due to supply shortages, concerns over increased tariffs by Trump, and expectations of interest rate cuts by the Federal Reserve. \[Source: Mitrade; Copper price trend over the past three months\] 1. RBA Interest Rate Hike in 2026 Latest data shows that Australia's November CPI increased by 3.4% year-on-year, lower than expected. The key inflation indicator rose by 3.2% year-on-year, in line with expectations. These figures are above the Reserve Bank of Australia's target range of 2%-3%, indicating that the possibility of an interest rate hike within the year still exists. Currently, the market expects the Reserve Bank of Australia to raise interest rates once in 2026, while anticipating the Federal Reserve to cut rates twice in 2026, with the divergence in monetary policy supporting the rise of AUD/USD "If the fourth quarter CPI exceeds expectations, the Reserve Bank of Australia may tighten monetary policy as early as next month," said Marcel Thieliant, Head of Asia-Pacific Economics at Capital Economics. Australia will announce the fourth quarter CPI data on January 28. Deutsche Bank pointed out that the interest rate advantage of the Australian dollar among G10 currencies will further increase. It expects the Australian dollar to reach 0.69 against the US dollar in the second quarter of 2026 and 0.71 by the end of the year ## Related News & Research - [Qatar says cargo vessel coming from Abu Dhabi attacked in its waters](https://longbridge.com/en/news/285837879.md) - [Costco is a big winner of the gas price chaos](https://longbridge.com/en/news/285836472.md) - [BoE’s Bailey warns of looming ‘wrestle’ with US over stablecoin rules, flags run risk for UK](https://longbridge.com/en/news/285820715.md) - [Are SanDisk and Micron Too Expensive? Here's How You Can Invest in the Artificial Intelligence (AI) Memory Supercycle for Just $50.](https://longbridge.com/en/news/285845554.md) - [New York Times: More Than Just News, But Is the Valuation Good Enough?](https://longbridge.com/en/news/285841955.md)