Forecasts for the AUD/USD in 2020 are influenced by three factors; the coronavirus impact on economies, changes in the delta between interest rates in Australia and the US and also the trade war between China and the US.
Australian dollar to US dollar bank forecasts
The Australian dollar has been savaged in March sliding to US55 cents the lowest since 2003. Growing fears of the coronavirus outbreak has moved the market into safer currencies such as the USD and away from AUD, NZD and CAD. The virus was a double blow to the Aussie after the earlier threat of proxy war between the US and Iran in Iraq had also pared back some of the gains the Aussie had made coming into the New Year. The Australian dollar had started the new decade strongly climbing to multi-month highs helped along by cooling trade tensions between the United States and China and optimism for global economic growth in the year ahead. The Aussie broke back over US70 cents on the final day of 2019 — a level not seen since mid year. During December the Australian dollar reversed direction (again) and climbed steadily back up against the US dollar on the back of the strength of the housing market and a market perception that further interest rate cuts were less likely.
National Australia Bank (NAB) are predicting the AUD/USD rate to rise to 71cents by the end of 2020.
You can read more about AUD cross-rate forecasts here AUD Trends and Forecasts for 2020.
Forecasts and predictions for the AUD/USD exchange rate change all the time, affected by news events and relative sentiment towards the Australian and US economies. This continually updated article reviews AUD to USD bank forecasts and recent trends for both currencies.