The medium-term outlook for AUDUSD depends on how global growth, commodity demand and interest rate expectations evolve. The pair often reacts strongly to shifts in risk appetite because the Australian dollar is tied closely to commodities and broader market sentiment. If global growth improves and China shows stronger industrial activity, demand for Australian exports usually rises. That can help the currency gain against the US dollar.

The outlook also depends on the policy gap between the Reserve Bank of Australia and the Federal Reserve. If the Fed signals a slower path for rate cuts or keeps policy tight for longer, the US dollar may stay supported. That can limit AUDUSD upside. On the other hand, if inflation in the United States cools faster than expected, the market may price in more easing, which could weaken the dollar.

Domestically, Australia’s labour market, wage growth and consumer spending will guide expectations for the RBA. Any signs of resilience can support the currency. Weak data may push AUD lower. Commodity prices, especially iron ore, remain an important driver.

Overall, the medium-term view leans cautiously optimistic. Steady global demand and a softer US dollar could support gradual AUDUSD gains, but uncertainty around China and central bank decisions may keep the pair in a broad range.