AUD/USD Interest Rate Differential
The current policy-rate gap between Australian Dollar and US Dollar, and which side of AUD/USD earns the carry. Updated daily · as of June 18, 2026.
Australian Dollar carries the higher policy rate, so going long AUD/USD earns positive carry (swap); the opposite side pays it.
This is the current gap. The market trades the expected differential, which can move AUD/USD before any rate change lands.
Go deeper
All interest rate differentials
The full matrix and carry calculator for every major.
The Carry Trade
How the differential becomes a daily swap, and why it crashes.
Australian Dollar rate decision
The schedule and results that move the AUD leg.
US Dollar rate decision
The schedule and results that move the USD leg.
AUD/USD carry — frequently asked
What is the AUD/USD interest rate differential?
The AUD/USD interest rate differential is currently +0.60 pp — the Australian Dollar policy rate (4.35%) minus the US Dollar policy rate (3.75%). Australian Dollar carries the higher rate, so it tends to attract demand.
Does long AUD/USD earn or pay swap (carry)?
Going long AUD/USD earns positive carry, paid as the daily swap (rollover), because that side holds the higher-yielding currency (Australian Dollar). The opposite side pays the swap. Carry is simply the interest-rate differential turned into a daily cash flow.
Why does the expected AUD/USD differential matter more than today's?
Markets price the future, not the present. AUD/USD can move on a widening or narrowing expected differential before any actual rate change, as new data and central-bank guidance shift the expected paths of the Australian Dollar and US Dollar central banks. Today's gap is largely already priced in.
Does the higher-yielding side of AUD/USD always go up?
No. The rate differential is gravity, not a guarantee. It dominates in calm, risk-on conditions, but in a risk-off shock capital rushes to safe havens regardless of yield, and crowded carry positions can unwind violently.