UBS Predicts Australian Dollar to Reach 0.73 by September 2026

A forecast from UBS suggests that the Australian Dollar (AUD) will continue to strengthen against the US Dollar (USD), reaching an exchange rate of 0.73 by September 2026.

The current exchange rate, which closed at 0.7026 in July, has already gained 1.65% over the month and more than 5% since the start of the year, leaving it back above the psychologically important level of 0.70.

UBS expects the AUD/USD pair to rise by roughly one cent each quarter, driven by a broader improvement in the Australian Dollar's backdrop and a gradual weakening of the US currency. The bank's forecast assumes that external forces such as global risk appetite, commodity conditions, and investor sentiment will outweigh any fading support from Australian interest rates.

The technical tone has improved with AUD/USD closing July above its 20-day moving average and around its declining 50-day average. However, the exchange rate still needs to overcome resistance at the July high of 0.7044 and clear the May peak of 0.7277 for UBS's forecast to become technically credible.