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Australian Dollar Forecasts for 2022

This article looks at what the banks are predicting for the Australian dollar (AUD) over the long term in 2022.

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2022 Australian Dollar forecasts downgraded

Since June 2021 the Australian dollar has been falling against the US dollar. For the rest of 2021 many economists are expecting a minor rebound to 80 cents, before trending sideways in the new year.

Many economists have lowered their Australian dollar (AUD) forecasts for 2022 to remain between 75 and 80 cents by June, but also expect the bumpy ride to continue.

ANZCBANABWestpac
Dec 20210.82000.77000.78000.7500
Jun 20220.82000.80000.80000.7700

AUD to USD

AUD
*Wholesale exchange rate updated

AUD to USD

Wholesale exchange rate updated

Australian dollar predictions in 2022

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 2022 will be slightly higher on average than 2021. ANZ, CBA, NAB and Westpac expect the Australian dollar to average above 75 cents against the US dollar in 2022, about 5 cents higher than in 2021.

AUDUSD performance

2022 Australian Dollar forecasts downgraded

Two of Australia's big banks have downgraded their forecast in 2022, but still expect the AUD/USD exchange rate to rise from 2021 levels.

The National Australia Bank expects the Australian dollar to move between 75 and 80 cents in the back half of 2021. Westpac also lowered their prediction for the AUD with a forecast of 75 cents by the end of 2021.

Both banks expect the Aussie dollar to rise towards 80 cents against the US dollar by June, 2022.

Here's why:

  1. Massive 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, but banks are anticipating strength going into Christmas. There could be many reasons why the Aussie dollar will improve.

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