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Hong Kong dollar HKD forecasts for 2020

#Forecasts #HKD

Forecasts and predictions for the Hong Kong dollar change all the time, affected by news events and relative sentiment towards the HK economy. This continually updated article reviews HKD bank forecasts and popular cross-rate trends.

The Hong Kong dollar has been pegged to the US dollar since 1983. Since 2005 the HKMA has kept the currency trading at a range between HK$ 7.75 and HK$7.85.

When HKD moves too close to either limit, the HKMA acts by either buying or selling the currency. So far in 2020, the HKMA has intervened in the market by selling more than HK$50 billion because of high demand for the Hong Kong dollars from demand due to several large IPOs on the Hong Kong Stock Exchange, including JD.com and Tencent.

Earlier in the year the threat of proxy war between the US and Iran in Ira helped bring on gains in the Japanese yen and US dollar plus currencies pegged to the greenback such as the Hong Kong dollar.

Since April 2020, authorities have intervened multiple times to prevent the currency from strengthening past its permitted trading maximum with the U.S. dollar USD/HKD = 7.75, more interventions are to be expected if the Hong Kong dollar continues to hit the strong end of its trading band.

 

USDHKD Trend & Alerts

USDHKD at 7.7543 is near its 90-DAY average, range 7.7500-7.7564.
🔔 USDHKD is at 90-DAY HIGHS.
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Alert:90-DAY HIGHS |
US Dollar to Hong Kong Dollar
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SELL HKD / BUY USD

Hong Kong Dollar Forecasts & News

As reported by Bloomberg, top advisers to President Donald Trump want the U.S. to undermine the Hong Kong dollar’s peg to the U.S. dollar as the administration considers options to punish China for recent moves to chip away at the former British colony’s political freedoms.

HKD forecasts are influenced by three factors; the coronavirus impact, changes in the delta between interest rates the US (as HKD is pegged to USD) and also the trade war between China and the US and increasingly Australia.

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.

Get more details in the article AUD to HKD Forecasts.


 

AUDHKD Trend & Alerts

AUDHKD at 5.9834 is 4.1% above its 90-DAY average, range 5.4454-6.0499.
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Australian Dollar to Hong Kong Dollar
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Invert Rate
SELL HKD / BUY AUD

You can also read our full Foreign Exchange Guide to Hong Kong.

 
Please note that the opinions of our authors are their own and do not reflect the opinion of Best Exchange Rates and should not be taken as a reference to buy or sell any financial product.