AUD/HKD has traded lower in range in 2021 (6.1-5.7) and much less volatile than last year when the pandemic shook the currency markets.
The Aussie dollar in 2021 has had a long slide down against the HK dollar and remains below its 90-day average and well down from the highs above 6 earlier in the year.
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In February 2021 AUD/HKD hit it highest level (around 6.10) since June 2018. This is on the back of positive headlines that are boosting risk sentiment, prompting investment in equities and taking money away from the USD, to which the HK dollar is pegged.
In January the Hong Kong government reported unemployment was at its highest level for 16 years due to the impact of the pandemic, and suggested that this might worsen ahead of the Chinese New Year.
AUD/HKD forecasts are influenced by three factors; the coronavirus impact on and response by both economies, changes in the delta between interest rates in Australia and the US (as HKD is pegged to USD) and also the trade war between China and the US and increasingly Australia.
OFX view on USD/HKD – “Borders are set to slowly re-open and an increasing number of the population are starting to set up travel plans in the coming months, which should bode well for HKD short-term outlook. We could expect to see HKD push USD back down to the 7.7675 to 7.7725 HKD levels next month.”
You can also read our full Foreign Exchange Guide to Hong Kong.
You can read more about other AUD cross-rate forecasts here AUD Trends and Forecasts for 2021.
Disclaimer: Please note any provider recommendations, currency forecasts or any opinions of our authors should not be taken as a reference to buy or sell any financial product.