The Daily Aus Why the Aussie dollar is surging
14 snips
Jan 28, 2026 The Aussie dollar has jumped to about 70 US cents and what that means for travellers is explored. Reasons behind the US dollar's weakness are unpacked. Commodity demand, higher local interest rates and investor appetite are highlighted as drivers of the Aussie. Upcoming central bank decisions and fresh inflation data are discussed alongside who gains and who feels the pain.
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Aussie Reaches 70 Cents
- The Aussie dollar hit 70 US cents, its highest since Feb 2023, reversing from a 60 cent low last April.
- That swing materially changes travel costs and reflects fast-moving currency markets.
Coffee Shows Exchange Rate Impact
- Sam uses a New York coffee example to show exchange-rate impact on spending.
- A $6 US coffee cost about $10 AUD at 60c but ~ $8.60 AUD at 70c, saving Australians money when travelling.
Aussie Gains From US Dollar Weakness
- The move is largely a US-dollar story driven by falling confidence in the USD, not only Aussie strength.
- Political uncertainty and mixed tariff comments from President Trump weakened trust in the dollar.