Australian Dollar Forecasts for 2023

This article looks at what the banks are anticipating for the Australian dollar (AUD) over the long term in 2023.

The 2024 Forecasts for the Australian Dollar are out now

With most of 2023 out of the way, attention turns to 2024.

Now that most economists have released their predictions for the Australian dollar, head here to find out the most up to date forecasts:

2023 Australian Dollar forecasts uncertain

Since June 2022 the Australian dollar has been falling against the US dollar. For the rest of 2022, most of the economists are expecting a minor rebound to 75 cents, before trending sideways in the new year. CBA is an exception, with a bearish outlook.

Many economists raised their Australian dollar (AUD) forecasts for 2023 from current levels to between 70 and 75 cents by June, but also expect instability to continue.

ANZ CBA NAB Westpac
Dec 2022 0.7600 0.6500 0.7200 0.7300
Jun 2023 0.7600 0.6200 0.7400 0.7600

AUD to USD

AUD
*Wholesale exchange rate updated

AUD to USD

Wholesale exchange rate updated

Australian dollar predictions in 2023

What do bank experts predict will happen to the Australian dollar?

If you agree with the top 4 banks in Australia, the Australian Dollar in 2023 will be about the same on average as 2022. ANZ, CBA, NAB and Westpac expect the Australian dollar to average 70 cents against the US dollar in 2023, with no year-on-year average change in exchange rates.

AUD to USD annual exchange rate forecasts
AUDUSD performance

2023 Australian Dollar forecasts downgraded

Two of Australia's big banks have downgraded their forecast in 2023, but still expect the AUD/USD exchange rate to rise from 2022 levels.

The National Australia Bank expects the Australian dollar to lower to around 68 cents in the back half of 2022. Westpac also dropped their prediction for the AUD with a forecast of 73 cents by the end of 2022.

Both banks expect the Aussie dollar to rise slowly above 70 cents against the US dollar by June, 2023.

Here's why:

  1. Improving Chinese demand for Australian commodities like iron ore
  2. A stronger than expected recovery in the Aussie economy
  3. A falling US dollar

Is the Australian dollar going up or down?

Currently, the Australian dollar is getting weaker and banks are expecting weakness to continue into Christmas. Although, there could be many reasons why the Aussie dollar will improve.

These are the most likely:

  • Australian economy bounces back and inflation is controlled
  • A weaker US dollar as the US economy continues to struggle
  • China’s demand for Australian commodities grow
  • Economic growth on a global scale improves
Updated: Posted on