Australian Dollar Strength Boosts Holiday Destinations

For Australian travelers in 2026, currency strength can be a major factor in planning their trip. According to Tristan Dakin, ANZ Country Manager of Wise, 'currency strength isn't usually the first thing you think about when planning to travel but it affects almost every aspect of the trip.' The Australian dollar has strengthened significantly against several currencies, making some destinations more favorable for travelers.

In 2026, Australia's economy is seeing positive growth, thanks in part to four cash rate increases. This increase in interest rates has boosted the value of the Aussie dollar, particularly against the New Zealand dollar, the Indonesian rupiah, the Turkish lira, and the Vietnamese dong.

Some popular destinations for Australians are still offering great value, such as Japan and Vietnam. In 2026, the Australian dollar is up around 10 percent against the yen over the past 12 months, making it an ideal time to visit hotspots like Tokyo, Kyoto, and Osaka. Similarly, Vietnam's currency has been on a five-year high, with the AUD buying more than 1,058 pesos at the end of 2026.

Other countries where the Australian dollar is strong include South Korea, Turkey, Argentina, Morocco, Vanuatu, India, the Philippines, Indonesia, Egypt, and Central America. Dakin notes that travelers can enjoy luxury stays in these destinations without breaking the bank due to the favorable exchange rates.