Commonwealth Bank of Australia: The Australian dollar is expected to weaken against major currencies by the end of the second half of 2026.

Kristina Clifton, a foreign exchange strategist at the Commonwealth Bank of Australia, stated that the Australian dollar is expected to decline against all major currencies in the coming quarters. She added that as the Reserve Bank of Australia stops raising the official overnight cash rate, the interest rate differential will be unfavorable for the Australian dollar. She also mentioned that the longer the Middle East conflict lasts, the greater the likelihood that market participants will significantly downgrade global economic prospects.