2017 Australian Dollar Forecast

Forecast for the Australian Dollar vary from bank to bank and from month to month. This article looks at the different outlooks and is updated regularly.

Updated in May 2017

See also: When To Watch The Australian Dollar: Key Dates in 2017 (Infographic)

 

The Forecast for the Australian Dollar in 2017

Australian Forecast 2017Volatility has rocked currency markets in 2016.

So far in 2017, the big surprise is how strong the Australian dollar has been. As a result, a few of the major banks have changed their forecasts.

 

 

While most forecast vary, many agree on the influences on the local currency. Here are the main three:

  1. Australian Interest Rates

  2. Commodity Prices

  3. Quantitative Easing in other western economies

 


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Will the Australian Dollar go higher?

From the current exchange rate, most forecasts have the AUD trading lower by the end of the year. So what could make it move higher?

There are plenty of possible reasons but here are the 3 most likely:

  • The Chinese government artificially stimulates the economy, driving up demand for our commodities (and our dollar)

  • The US economy slows down and their central bank fails to increase interest rates

  • The Australian economy picks up along with inflation, removing the need for further interest rate cuts from the RBA

 

Traveling on the Australian dollar in 2017?

Discover which are the 3 Best Countries to Spend Your Australian Dollars in 2017.

 

AUD EUR forecast for 2017

The National Australia Bank does not predict as much volatility in the AUD EUR as the AUD USD. It thinks that it will start next year at a similar level to now at 67 cents (or 0.6700).

The Commonwealth Bank also has it trading fairly flat, just above 66 cents while Wesptac has come in the highest of the 3 banks at 0.6852.

Europe

 

AUD GBP forecast for 2017

Interestingly, NAB has a 0.6000 forecast for the AUD/GBP every quarter until September 2017. CBA is less bullish on this cross rate with a AUD GBP 2017 forecast of 0.5615

UK

 

AUD NZD forecast for 2017

All 3 major banks we looked at, expect the AUD/NZD exchange rate to be at around 1.07000 leading into the new year, suggesting there is expectations of a rise in this rate. 

New Zealand

 

 

Help

If you need to talk to someone about your situation, contact The Currency Shop for an obligation free talk.

 

General advice: The information on this site is of a general nature only. It does not take your specific needs or circumstances into consideration. You should look at your own personal situation and requirements before making any financial decisions.

 
 

 


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