Forecasts and predictions for the Australian dollar change all the time, affected by news events and relative sentiment towards the Australian economy. This continually updated article reviews AUD bank forecasts and popular cross-rate trends.
Australian dollar in the markets
The threat of proxy war between the US and Iran in Iraq has 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. In November it had been all downhill traffic for the Aussie dropping back from highs close to 70c at the beginning of the month to around 67c against the USD by month end.
At the end of October the AUD had surged to a three month high against the US dollar following the third rate cut in a year by the US Federal Reserve. The gains were mainly due to the fall in the US dollar after the market sensed that US rates are more likely to rise now than fall further.
The RBA also added to the positive sentiment with an optimistic assessment of easing risks from the US-China trade war and Brexit. Accordingly markets are pulling back from bets that the cash rate will drop to 0.5 per cent and the possible start of quantitative easing.
Interestingly, AUD has decoupled from commodity prices in 2019. The price of iron ore (Australia’s largest export) nears multi-year highs while AUD languishes.
Further RBA interest rate cuts this year are now a certainty, and that doesn’t bode well for currency valuations.
For AUD forecasts and predictions read our Australian Dollar Forecasts report.
Australian dollar cross rate forecasts
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 Forecasts
Forecasts for the AUD/USD in 2019 are influenced by two factors; changes in the delta between interest rates in Australia and the US and also the trade war between China and the US. Read more
AUD to GBP Forecasts
In 2019 the AUD/GBP rate is in a tug of war between Brexit and the US/China trade war causing much volatility for the Aussie to pound exchange rate. Read more
AUD to EUR Forecasts
Should Brexit clarity emerge in 2019, euro strength should follow and this would compound Aussie weakness, resulting in lower AUD/EUR rates. Read more
AUD to JPY Forecasts
The FX market's bellwether for risk sentiment, AUD/JPY, is expected by Westpac at ¥72 at the end of 2019. Read more
AUD to INR Forecasts
A decrease in AUD/INR is expected in 2019, and that's bad news for Indian expat workers, who represent one of the largest groups remitting money from Australia. Read more
AUD General Info and Influences
The Australian dollar is the fifth most traded currency in the world and is popular with currency traders, because of the high interest rates in Australia, the freedom of the foreign exchange market from government intervention, the stability of Australia's economy and political system, and the view that the Australian dollar offers diversification benefits in a portfolio containing the major world currencies, especially because of its greater exposure to Asian economies and the commodities cycle.
The currency is commonly referred to by foreign-exchange traders as the "Aussie dollar".
Currency Exchange Locations
We have put together these guides to the major city CBDs where you will often find the best deals for buying foreign cash in Australia.
Recent AUD news articles
The threat of a proxy war between the US and Iran in Iraq has pared back some of the recent gains of “risk-on” currencies.
Last update: 8 Jan, 2020
Key Takeaways from the ACCC inquiry into currency conversion services. BestExchangeRates referenced among comparison sites playing an important role in customer awareness of the excessive currency margins charged by banks.
Last update: 11 Dec, 2019
Both the Australian dollar and British pound sterling have had a hard time of late caught between the rock of the China/US trade war and the Brexit hard place.
Last update: 7 Jan, 2020