Australian Dollar

Inflation, Interest Rates and the Australian Dollar: How they are all connected

  This week, the Australian dollar moved higher after recently released figures showed that inflation was on the rise. In fact, across the globe, exchange rates have been adjusting recently to higher than expected surges in inflation. But why does inflation change the value of the Australia dollar? Well, it’s because inflation and expectations of inflation have a direct influence on interest rates. Interest rates in turn, have a big impact on the value of a currency. This makes inflation, interest rates and the Australian dollar all connected. According to the Reserve Bank of Australia (RBA), inflation is:  An increase […]

The Australian Dollar rises above 75 cents as inflation increases

  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 […]

Why the Australian dollar is so weak against these major currencies

  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 Japan 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 […]

The Australian Dollar Sinks to It’s Lowest Point this Year

This week, the AUD/USD fell below 76 cents for the first time in 2021. The main driver of the exchange rate seems to be a US Dollar that is getting stronger. But is now a good time to buy Australian Dollars?   Here comes the greenback The recent move lower has been on the back of the US dollar (also known as the greenback). The US Dollar has gotten stronger against most other currencies including the Australian dollar. This has caused the AUD/USD to fall. So why is the US Dollar getting stronger? The US economy is flying. Thanks to […]

AUDUSD bank forecasts

2021 AUDUSD Dollar Forecasts

The Australian dollar against the US dollar exchange rate (AUDUSD) changes every second. This article shares bank forecasts to help you predict changes in the AUDUSD rate. The 2022 Forecasts for the AUD to USD 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: