Aussie Set to Climb Further on Rates Divergence, China Stimulus

Australia’s dollar may extend its rally into the end of the year on narrowing interest-rate differentials with the US and Chinese stimulus.

The Aussie has advanced 7.7% so far this year, to 2025 highs around 0.6669 on Friday. Societe Generale SA and Westpac Banking Corp. see it touching 0.6800 by the end of December. Though the call is also dollar-dependent, the greenback is weighed by concerns around inflation and the labor market.