In addition, uncertainty around international trade, geopolitical tensions, the US debt ceiling and the US banking collapse have caused investors to move away from riskier assets like the AUD. This combination of factors has caused the Australian dollar to be weaker than its peers in recent months.
Comparatively, the Australian dollar is a pro-cyclical currency, Zaman says. This simply means it appreciates in good times, and depreciates in bad times. So with the COVID-19 pandemic, the cost-of-living crisis and ongoing recession fears, AUD has been depreciating in value.
Despite this, most analysts in the foreign exchange space seem to believe that 2023 could be the year in which AUD finally moves past all of this volatility and makes sustained gains.
Australian Dollar to US Dollar Long-Term Forecast
It's slow growth, but economists and forecasters are staying optimistic that 2023 will indeed be a year of the Australian dollar trending upwards into 2024.
Predictions and Australian Dollar to US Dollar exchange rate forecasts from market pricing sources, investment banks and technical analysts. In one month the Australian Dollar / US Dollar exchange rate could be at 0.6509 according to market pricing as of 01/06/2023.
Most analysts are optimistic about the future of the AUD/USD exchange rate. The average forecast from banks and corporations for the first half of 2023 is $0.71, while they expect the price to rise to $0.73 by the end of 2023.
CommBank: CommBank expects the cash rate to peak at 3.85%, the level at which the RBA set it at the May meeting. Chief economist Gareth Aird expects rates will begin to drop by the end of 2023, as long as inflation falls.
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.
The Australian dollar has been weak recently due to a number of factors, including lower interest rates in Australia relative to other countries, the appreciation of the US dollar against the AUD, and weak commodity prices.
The 2023 Outlook for Major Currency Pairs
EUR/USD is predicted to reach 1.10 in March 2023, before declining to 1.08 September 2023 and holding at 1.08 in December 2023. USD/JPY is expected to hit 135 in March 2023, before trading at 133 in June 2023, 130 in September 2023 and 128 in December 2023.
Buying Australian Dollars before flying down under helps your travel money go further. If you wait until you're there, you'll be charged twice to use the ATM -- once from your home bank and once by the local bank. Australian banks typically charge $2AUD per transaction, which can add up quickly.
Historically, the Australian Dollar reached an all time high of 1.49 in December of 1973. Australian Dollar - data, forecasts, historical chart - was last updated on June of 2023.
Over the past 12 months, the Australian dollar has gained strength (a whopping 65%) against the Argentine Peso, while gains have been made against the Chinese Yuan and Japanese Yen.
The decision was made on 8 December 1983 and announced on 9 December 1983. In the two decades that followed, its highest value relative to the US dollar was $0.881 in December 1988. The lowest ever value of the dollar after it was floated was 47.75 US cents in April 2001.
As the mining and export industry thrives, the value of the Australian dollar rises. Strong demand – particularly from China – is driving this process. The current volatile market situation in the US and particularly Europe has helped make Australia's currency appear to be a safer alternative to investors.
Currency is backed by the central bank, which eliminates any risk of default.
In line with weakening global growth, commodity prices fell sharply in the second half of 2008, and the differential between Australian and foreign interest rates declined as it became increasingly evident that Australian growth would be weighed down by the global weakness (Graph 1).
Actual AUD to EUR exchange rate equal to 0.6061 Euros per 1 Australian Dollar. Today's range: 0.6073-0.6086. Previous day close: 0.6072. Change for today -0.0011, -0.18%.
GRAND TOTAL FOR 4 WEEKS: AUD $5000
There you go! $5000 will last you a minimum of 4 weeks without scrimping too hard on budgets.
One of the safest currencies to invest in, besides the US Dollar and Euro, is the Swiss Franc. Stable market economy, high GDP, low unemployment rate, country's focus on supporting its national currency, an extremely advanced banking system – all these factors make the Swiss franc an attractive investment opportunity.
Currently $1.00 US dollar to the Australian dollar is equivalent to $1.46 AUD.
ANZ: Late 2024
ANZ expects one more rate hike of 25 basis points in August that will see the cash rate peak at 4.10%. ANZ forecasts the RBA will begin cutting the cash rate in November 2024. It expects the first rate reduction will be 25 basis points, taking the cash rate to 3.85%.
The cash rate started at 0.10% in April 2022. These big four bank predictions may mean that interest rates on home loans could rise by 425 basis points in just over one year.
Kuwaiti Dinar (KWD) is the strongest currency against USD and the most valued currency in the world due to the country's strong economy. 1 KWD = $3.25. Data is current as of May 15, 2023.