Here are some ASX stocks that will benefit from a higher AUD, and stocks that will lose

The Aussie dollar has been surging in recent weeks and there are ASX stocks that will benefit from a higher AUD – as well as some that will lose. We cannot be certain how much longer this run will go on for, but we do know it is on a run right now.

After several quarters of sub-0.67 trading and broader pressure through much of 2025, renewed strength has emerged as markets price in a more hawkish or less-dovish Reserve Bank of Australia (RBA) stance relative to the Federal Reserve and as bearish momentum in the US dollar builds. Commodity price resilience and stabilisation of China’s economy has helped too.

Higher Australian yields relative to US yields make the AUD more attractive in currency markets, supporting demand and encouraging yield-sensitive flows into the Australian dollar.

The move above US$0.70 reflects both a softening US dollar and firming AUD fundamentals, a notable shift from the wider 2024–2025 period when the currency struggled against a resilient dollar and low global risk appetite.

So who will win? S tocks that benefit from a strong AUD typically have heavy import-dependent cost structures or domestic-only earnings, while those that lose from a strong AUD tend to rely on export sales priced in foreign currencies or have significant overseas revenue.

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Here are some ASX stocks that will benefit from a higher AUD

Companies that tend to gain when the AUD strengthens are those whose cost base is local but that import significant inputs or derive earnings domestically; a stronger AUD reduces their cost of purchasing goods or servicing foreign liabilities.

CBA (ASX:CBA) and other big banks (ANZ, Westpac and NAB) typically benefit from a stronger currency because it can signal lower inflation and interest rate relief, which tends to support credit growth and margins domestically, and because their domestic earnings aren’t weakened by translating foreign income back into AUD. As the AUD rises, the economic environment often becomes more stable for banks’ core Australian operations, although other macro factors can dominate.

Wesfarmers (ASX:WES) is a diversified industrial and retail group whose businesses (like Bunnings, Kmart and office supplies) source a large proportion of goods internationally. A stronger AUD lowers the AUD cost of imported inventory, potentially improving gross margins or allowing more aggressive pricing. Retailers that import heavily are classic beneficiaries of a rising currency.

Woolworths (ASX:WOW) and Coles (ASX:COL), Australia’s major supermarket chains, similarly stand to win from a strong AUD. Their businesses import a mix of food products and merchandise, and a stronger AUD reduces the AUD price of those imports, which can protect margins or enable competitive pricing in a price-sensitive sector.

Furniture outlets like Nick Scali (ASX:NCK), Harvey Norman (ASX:HVN) and Temple & Webster (ASX:TPW) traditionally benefit when the AUD is strong because apparel and furniture inventory is largely sourced offshore; a higher AUD reduces the local cost of imported goods. Higher AUD can therefore support healthier gross margins in these cost-sensitive retail segments.

Airline stocks, including Qantas (ASX:QAN), Air New Zealand (ASX:AIZ) and Virgin Australia (ASX:VAH) can also benefit from a stronger AUD because a large chunk of their input costs—fuel and leased aircraft—are priced in USD. A stronger AUD makes these expenses cheaper in local currency, easing cost pressures and sometimes improving domestic travel demand (as discretionary income has more purchasing power).

Here are some ASX stocks that will lose from a higher AUD,

BHP (ASX:BHP), Rio Tinto (ASX:RIO), Fortescue Metals (ASX:FMG) and other large miners typically earn the majority of their revenues from iron ore, copper, coal and other commodities sold in USD. When the AUD is strong relative to the USD, those USD receipts convert into fewer Australian dollars, shrinking reported revenue and, all else equal, earnings margins. Commodity exporters are classic “losers” from a rising AUD unless commodity prices appreciate strong enough to offset the FX effect.

Other stocks in the ‘materials’ space such as BlueScope Steel (ASX:BSL) (even though it has significant operations in the US) can be disadvantaged when the AUD is strong relative to pricing for imported steel products, as their cost advantage against competitors shrinks and AUD repatriation from USD earnings declines

CSL (ASX:CSL) and other healthcare or industrial exporters that derive a large share of their revenue from overseas markets (often priced in USD or Euros) also see weaker AUD-translated earnings when the local currency strengthens. Pharmaceutical and medical device companies like CSL, Cochlear or ResMed generate most of their sales offshore, and a rising AUD erodes the AUD value of those offshore receipts.

James Hardie (ASX:JHX) is a materials manufacturer with substantial US operations; its revenue and profit are largely priced in USD. A higher AUD reduces the AUD value of its substantial foreign earnings stream and can also make its products less competitive globally versus local manufacturers in key markets.

Finally, Aristocrat Leisure (ASX:ALL) generates a majority of revenue from foreign markets (notably the US) and earns in USD and other currencies. Like other offshore earners, a higher AUD translates into lower AUD earnings and can dampen reported growth, especially in technology and gaming segments priced in foreign currencies