<div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The </span><a href="https://www.9news.com.au/australia" rel="" target="" title="Australian"><span>Australian</span></a><span> dollar has started the week off on a high note, with successful </span><a href="https://www.9news.com.au/usa" rel="" target="" title="US"><span>US</span></a><span>-</span><a href="https://www.9news.com.au/china" rel="" target="" title="China"><span>China</span></a><span> trade talks pushing it higher – and forecasters believe there's more good news to come over the next 12 months.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>While the Aussie had been hovering around US 65.0 cents for the past week, it gained some upward momentum following a meeting between United States Treasury Secretary Scott Bessent and Chinese officials in Malaysia over the weekend.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>With economists nervous about trade tensions between the world's two largest economies escalating, negotiators from both Beijing and Washington suggested a positive outcome is likely when </span><a href="https://www.9news.com.au/world/trump-travels-to-asia-and-a-meeting-with-chinas-xi-as-the-us-government-shutdown-drags-on/ed03bf93-0666-4574-aa6b-6f28e088d08f" rel="" target="" title="presidents Xi Jinping and Donald Trump meet in South Korea on Thursday"><span>presidents Xi Jinping and Donald Trump meet in South Korea on Thursday</span></a><span>.</span></div></div><div><div id="adspot-mobile-medium"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE:</span></strong><span> </span><a href="https://www.9news.com.au/national/murderer-to-come-face-to-face-with-family-of-victim/7f40dd9b-45da-4287-a636-58a8e4b91d43"><strong><span>'I will never forgive': Mum confronts daughter's murderer in court</span></strong></a><strong><span></span></strong></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>China's top trade negotiator, Li Chenggang, told reporters the two sides had reached a "preliminary consensus", while Bessent said there was "a very successful framework".</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Bessent also told US television that the threat of extra 100 per cent tariffs on China was "effectively off the table".</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>He added there were initial agreements to stop the precursor chemicals for fentanyl from coming into the US, and that Beijing would make "substantial" purchases of soybean and other agricultural products while putting off export controls on rare earths.</span></div></div><div><div class="OUTBRAIN" data-reactroot="" data-src="//www.9news.com.au/finance/australian-dollar-increase-china-us-trade-talks/6ec89de6-e465-4435-9eb9-79356ab33917" data-widget-id="AR_5"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE:</span></strong><span> </span><a href="https://www.9news.com.au/finance/australia-economy-2026-outlook-oxford-economics-report/5fec4592-2192-49a6-b46b-97d50a12d858"><strong><span>New financial 'pain' coming for Aussies - but there's a silver lining</span></strong></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span></span></strong><span>The developments boosted the Australian dollar, lifting it up to about 65.4 US cents this afternoon.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>While that's still shy of the year-best heights reached in September and earlier this month, when it cracked the 66-cent mark, forecasters are expecting it to continue rising.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>In a new report released this morning, Oxford Economics head of economic research and global trade Harry Murphy Cruise said the Aussie dollar would reach 66 cents against the greenback by the end of the year, before rising further in 2026.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE:</span></strong><span> </span><a href="https://www.9news.com.au/national/words-missing-from-alleged-lehrmann-victims-phone-court-hears/1724de11-2080-4608-b872-1ff27c48a869"><strong><span>Words 'missing' from alleged Lehrmann victim's phone, court hears</span></strong></a><strong><span></span></strong></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"Tariffs, government shutdowns, and mass deportations are self-inflicted wounds (for the US dollar), and investors are looking elsewhere in response," he said.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"Commodity price weakness and China's slowing economy will temper gains (for the Australian dollar), but not offset the appreciation drivers," he added. </span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"We expect the Aussie to end the year at $0.66 to the US dollar and $0.68 by the end of 2026."</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><a href="https://www.9news.com.au/national/how-to-follow-9news-digital/29855bb1-ad3d-4c38-bc25-3cb52af1216f" target="_blank"><strong><em><span>DOWNLOAD THE 9NEWS APP</span></em></strong></a><strong><em><span>:</span></em></strong><span> </span><em><strong><span>Stay across all the latest in breaking news, sport, politics and the weather via our news app and get notifications sent straight to your smartphone. Available on the</span></strong></em><span> </span><a href="https://apps.apple.com/au/app/9news/id1010533727" target="_blank"><strong><em><span>Apple App Store</span></em></strong></a><span> </span><strong><em><span>and</span></em></strong><span> </span><a href="https://play.google.com/store/apps/details?id=nineNewsAlerts.nine.com&amp;hl=en_AU" target="_blank"><strong><em><span>Google Play</span></em></strong></a><strong><em><span>.</span></em></strong></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><em><span>The information provided on this website is general in nature only and does not constitute personal financial advice. The information has been prepared without taking into account your personal objectives, financial situation or needs. Before acting on any information on this website you should consider the appropriateness of the information having regard to your objectives, financial situation and needs.</span></em></div></div>