Usually at The Currency Shop we give you an Australian Dollar update every week and look at how it's performing against the other major currencies. In this article, we're going to look at the Australian Dollar over the last two years. Doing this gives a better idea if whether the Aussie is trending higher or lower against other major currencies.
We will cover;
- AUD to USD
- AUD to EUR
- AUD to GBP
- AUD to NZD
- What it means for you.
- Australian banks currency forecasts.
Video: Australian Dollar Update
Australian Dollar Against the US dollar | AUD to USD
While it has seemed like the Australian dollar has been low lately, it's lowest point this year is still higher than it was 18 months ago. So it has been on an upward trend. It has been quite volatile in 2018 and but has been rising since the end of 2016. The major influences between these currencies are commodity prices and steady interest rates in the US.
Australian Dollar Against the Euro | AUD to EUR
It's been a bit of a rollercoaster for the Australian dollar against the Euro. It has dropped 10 Euro cents after reaching its high of 72.5 Euro cents. However, this is more to do with the European economy being strong, more so than a weak Australian Dollar.
Australian Dollar Against the Pound | AUD to GBP
Brexit was a huge influence of most currencies against the Pound. Therefore, when it happened, the Australian dollar rocketed 30% against it. The UK's economy has stabilised though, and has done better than expect in the years since Brexit was passed.
Australian Dollar Against the New Zealand Dollar | AUD to NZD
The Australian Dollar can be volatile against the New Zealand Dollar. For most of the last two years though, the exchange rate has been somewhere between 1.0250 and 1.1250. This has be mainly driven by commodity prices and interest rates out of New Zealand.
Currency Forecasts | Where will the Australian Dollar go next?
For most currencies, the banks see the Australian Dollar going lower in the second half of the year. Consequently, this is very different from the more optimistic forecasts we saw earlier this year that said the Australian dollar would be higher by June.
Summary | What Does it All Mean?
While the Australian dollar has dropped against the Euro, Pound and even the US dollar recently, it’s lowest point this year is still higher than it was 18 months ago against the US dollar. So really, it’s not all bad news.