Australian Dollar Holds Near 2025 High on Yield, Commodities
Executive Summary
Key insights and market outlook
The Australian Dollar (AUD) remained near its highest level in 2025, supported by strong local bond yields and high commodity prices. AUD traded at $0.6714, following a 1.6% surge last week to a 14-month high of $0.6724. This marked the currency's largest weekly gain since April and its first annual rise in five years, reaching 8.5% growth.
Deep Dive Analysis
Australian Dollar Maintains Strength in Late 2025
Supported by Local Yields and Commodity Prices
The Australian Dollar (AUD) maintained its strength near a new 2025 high during Monday's (December 29, 2025) trading session. The currency's resilience was primarily driven by robust local bond yields and elevated commodity prices, despite the New Zealand Dollar (NZD) lagging behind.
Key Performance Metrics
AUD was last traded at $0.6714, just below its 14-month peak of $0.6724 reached the previous week. The currency recorded a 1.6% weekly gain, representing its most significant weekly increase since April 2025. This surge contributed to AUD's annual growth reaching 8.5%, marking the first positive yearly performance in five years.
Market Drivers
The strengthening AUD can be attributed to two primary factors: the rise in local bond yields and the sustained high levels of commodity prices. These elements have collectively bolstered investor confidence in the Australian currency, positioning it favorably against its peers in the region.
Source References
Story Info
Topics Covered
Key Events
AUD Reaches 14-Month High
Significant Weekly Gain Recorded