Those paying attention to Australian economic data recently should have noticed that the Australian dollar's rebound has been quite strong.

In October, household spending increased by 1.3% month-on-month, far exceeding the expected 0.6%, which directly indicates that domestic demand in Australia remains quite robust.
Coupled with a 3.8% year-on-year increase in CPI, inflationary pressures have not eased, and the market is beginning to reassess the Reserve Bank of Australia's policy direction.

Previously, everyone was betting that the central bank would continue to cut interest rates, but now the sentiment has shifted.
With the release of household expenditure data, market expectations for rate hikes by 2026 have surged from 18% to 55%.
This suggests that the RBA may no longer adopt an easing stance and could even start tightening earlier.
This change in expectations has directly pushed up the Australian dollar, and the yield on 3-year government bonds has also broken above 4%.

Several major banks are quite optimistic about the future trend of the Australian dollar.
National Australia Bank predicts the AUD/USD will rise to 0.71 by mid-2026, and Westpac and ING also forecast further gains for the Australian dollar.
From this perspective, the question of whether the AUD will fall again seems unlikely; instead, it’s more about how high it can go.
However, this also depends on the trend of the US dollar and changes in Federal Reserve policies, so it’s important to keep an eye on upcoming economic data.