2021 Australian Dollar Forecasts & Predictions
Australian dollar exchange rates and forecasts change all the time. This article looks at bank predictions and is updated regularly.
The 2022 Australian dollar Forecasts are out now
With most of 2021 out of the way, attention turns to 2022.
Now that most economists have released their predictions for the Australian dollar, head here to find out the most up to date forecasts:
2021 Australian Dollar forecasts upgraded
Since January, the Australian dollar has been on a march towards 80 cents against the US dollar. The AUD managed to hit the 80 cent level before easing a touch.
Many economists predict the Australian dollar (AUD) to reach and actually move above 80 US cents by the end of this year.
AUD to USD chart
What do bank experts predict will happen to the AUD?
If you agree with the top 4 banks in Australia, the Australian Dollar will rise in 2021.
ANZ, CBA, NAB and Westpac expect the Australian dollar to average above 75 cents against the US dollar in 2021, about 5 cents higher than in 2020.
2021 Australian Dollar forecasts upgraded
The National Australia Bank now expects the Australian dollar to move up to between 80 and 85 cents in the back half of this year. Westpac also increase their prediction for the AUD with a forecast of 82 cents by the end of 2021.
- Massive Chinese demand for Australian commodities like iron ore
- A stronger than expected recovery in the Aussie economy
- A falling US dollar
Why is the Australian dollar is rising?
There are many reasons why the Aussie dollar has been getting stronger.
These are the most likely:
- Vaccine rollout reduces coronavirus globally despite new strains
- Australian economy bounces back
- A weaker US dollar as the US economy struggles
- China’s demand for Australian commodities grow
- Economic growth on a global scale recovers
AUD bank forecast major crosses for 2021
More AUD to USD forecast news
There are many different influences over the local currency, increasing commodity prices appear to be the key driver of the recent rise of the Australian dollar. Prices of commodities like oil, wheat and nickel have soared recently on the back of the war in Europe. This has increased the demand for ‘commodity’ currencies like the Aussie dollar, helping it move higher against most major currencies including the US dollar, Euro and British pound. According to the Reserve Bank Australia There has been a close relationship between the terms of trade and the value of the Australian dollar over […]
The AUD to USD exchange rate rose above 75 cents for only the second time since the end of July. At 12:50pm, the CPI or inflation data was released. It showed that prices in Australia are rising faster than previously forecasted. Here are some of the key points: Consumer prices rose 0.8 per cent during the September quarter (July, August and September). Prices are 3% higher than a year earlier. The increase was largely because of fuel which increased 7.1% and rising house prices which increased 3.3%. Interest rates are one of the big drivers of Australian dollar. Right […]
In the past 12 months, the Australian dollar has been sent lower against US dollar, New Zealand dollar and the British pound. The exchange rate is also slightly down against the Japanese yen and Euro. It’s largely because of two large influences over the Australia dollar – interest rates and commodity prices. The strength or weakness of the Australian dollar exchange rate is also impacted by the value of the other currency. For example, if the US dollar gets stronger in its own right, then all other things being equal, the Australian dollar will weaken and the AUD to […]
If you are travelling overseas this year from Australia, the best time to buy US dollars with Australian dollars was in late February 2021. This is because the AUD/USD peaked at 0.7997 and has fallen gradually since. The same applies to anyone transferring money overseas in US dollars. More recently, the AUD/USD exchange rate rose above 75 cents for the first time since late October 2021, making it the best time to buy US dollars so far this year. In general, if you are buying US dollars with Australian dollars, you want the AUD/USD exchange rate to be as […]
This article looks at what the banks are predicting for the AUD to USD exchange rate over the long term in 2022.
This article looks at what the banks are predicting for the Australian dollar (AUD) over the long term in 2022.