Forecasts for the Australian dollar change all the time, affected by news events and relative sentiment towards the Australian economy. But in 2020, AUD exchange rates have been driven almost entirely by the effects of the Coronavirus pandemic rather than any fundamentals of the Australian economy.
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What’s in this Australian dollar forecast summary?
The pandemic year 2020 saw solid gains for the AUD against the majority of currencies, in particular from the initial pandemic driven market volatility in March right through to the end of the year. This was off the back of positive sentiment which continues to drive direction into 2021. The end of the year sees the Aussie dollar nudging 0.76 US cents.
Australians are more focussed on their currency exchange rate than are the citizens of most other countries! Read why in our Foreign exchange guide to Australia.
The following sections show a summary of bank forecasts for popular AUD cross rates that we have reviewed, you can view each forecast article for more details.
AUD to USD
National Australia Bank have revised upwards their Aussie dollar forecasts now expecting the AUD/USD rate at US80c by June 2022 ( USD/AUD = $1.25 ), up from their previous forecast of US75c.
AUD/GBP 10 year historic rates & change to 14-Jan-2021 : 0.5683
AUD to EUR
The Euro has continued to struggle in December against the Aussie dollar with AUD/EUR staying at 6-MONTH HIGHS (above €0.62) due to the Aussie dollar strength and despite the resolution to Brexit negotiations.
AUD/EUR 10 year historic rates & change to 14-Jan-2021 : 0.6400
AUD to SGD
Into 2021 AUD/SGD forecasts are primarily influenced by the perceived relative coronavirus impact on economies and the success of government’s response to the pandemic, both fiscally and in monetary policy.
AUD/SGD 10 year historic rates & change to 14-Jan-2021 : 1.0303
AUD to NZD
The AUD might break through recent resistance around 0.7340 over the next weeks. A clearcut Biden win and further positive COVID-19 vaccine news could help drive the AUD towards new highs closer to 0.74 US cents. The NZD followed a similar pattern to the AUD after the US election, benefiting from increased market appetite for risk and breaking through 0.68 US cents to mark fresh 20-month highs. The NZD also outperformed against other counterparts, surging nearly 3% against the yen, while testing new highs against the euro and GBP. The currency remains trading against AUD within the 0.93 and 0.95 mediumterm range. November Update
AUD/NZD 10 year historic rates & change to 14-Jan-2021 : 1.0778
AUD to JPY
AUD to JPY has gained value in stock markets appreciated with positive market sentiment associated with Joe Biden’s election win and vaccine news. At the beginning of November AUD/JPY was ¥73.5 and has risen around 7 percent, achieving National Australia Bank’s prediction of ¥78 by the end of 2020
AUD/JPY 10 year historic rates & change to 14-Jan-2021 : 80.7498
AUD to HKD
In mid December AUD/HKD has hit it highest level (over 5.85) 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.
AUD/HKD 10 year historic rates & change to 14-Jan-2021 : 6.0311
AUD to INR
In 2020, from the initial pandemic shock in March through to the end of the year, AUD/INR rose 30 percent, welcome news for Indian expat workers, who represent one of the largest groups remitting money from Australia.
