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HSBC sees AUD/USD upside potential into 2027 on carry support

HSBC links the bullish bias to Australia’s relatively high cash and government bond yields, plus expectations that the Fed stays on hold.

Reported · Written up by our desk · Major Pairs

HSBC strategists told investors they see room for AUD/USD to rise into 2027, citing Australia’s comparatively high cash and government bond yields that can make the Australian dollar attractive on a carry basis in G10 FX, according to FXStreet.

The outlook also rests on timing, with the note suggesting AUD/USD may have already bottomed. HSBC points to the currency’s sensitivity to global growth, and it highlights that resilient US activity could help support the pair while the Federal Reserve is on hold.

FXStreet also frames near term FX conditions around global growth expectations, with its wider market wrap noting that global drivers including US activity and central bank expectations are influencing rate differentials.

Elsewhere in the same market package, FXStreet said investors are watching other major currencies and commodities, while mentioning Ethereum’s relative strength versus other crypto majors over the past week.

Latest closeEthereum $1,924.45 ▲2.8%

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