The Latest 2020 Australian Dollar Forecasts from the Big 4 Banks

Forecasts for the Australian Dollar in 2020 from bank experts are revised throughout the year. This article looks at the different predictions and is updated regularly.

The Australian dollar is currently sitting around the lowest levels in over 17 years (around 59 cents AUD to USD) heading towards the levels when the dot-com bust impacted the Aussie in 2000-2002.

Financial markets everywhere are plunging drastically in response to the uncertainty of the economic impacts from the coronavirus pandemic.

The good news is the Australian government just announced a stimulus package, which could help support the economy and the AUD. The bad news? It's likely a global economic recession is already underway.

It's also likely the "Big 4" forecasts will be revised down in the coming weeks.

Right now, NAB and CBA predict the AUD/USD to be around 0.7000 by the end of the year. ANZ expects it to be 0.6800. Westpac has kept their December forecasts at 67 cents.

How will coronavirus affect exchange rates?

Uncertainty from the coronavirus pandemic increases volatility in currency markets. Generally, safe-haven currencies like the USD, CHF and JPY will likely move higher. However, commodity currencies such as the AUD, NZD, CAD and ZAR exchange rates will likely fall.

Check today's Australian Dollar Exchange Rate: AUD Currency Converter and Graph

Updated in March 2020

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Australian Dollar in 2019

In 2019, the Australian dollar tumbled even further than in 2018, and all the 4 major banks dropped their year-end AUD forecasts to reflect a change in expectations.

NAB and ANZ forecasts the AUD/USD to be even lower still at 0.6500 in December. Meanwhile, Westpac and CBA has it moving to 0.6700.

In September 2019, the Australian dollar hit a 10-year low of 0.6749.

 

Will the Aussie Dollar go up in 2020?

Maybe slightly, if we agree with the major banks. The 'Big 4' banks repeatedly moved predictions lower in 2019, so who's not to say they won't do the same thing to their AUD/USD forecasts in 2020?

Let's examine the 4 most likely reasons the Aussie will remain weak at current forecast levels:

  • Coronavirus pandemic (or other health outbreaks) will impact Australia's tourism and education industry
  • The US economy picks up, US political risks ease, and their central bank increases interest rates, supporting the USD
  • The Australian economy falters and inflation only slowly and gradually picks up, increasing the chance of interest rate cuts from the RBA
  • China’s economic growth slows more than expected, lowering demand for our commodities (and our Aussie dollar)
  • Economic growth slows down in most countries worldwide

 

AUD long term prediction

We know what the banks are predicting for the AUDUSD in 2020, but what do they think will happen in 2021 and beyond?

  • ANZ is the most negative. They forecast the AUD will stay the same as 2020 at 68 cents in 2021 and 2022
  • The most optimistic is NAB. They think the AUD will average 74 cents in 2021 and average 76 cents in 2022
  • In 2021, CBA is expecting the AUD to average 72 cents in 2021
  • Westpac has the same prediction as CBA, with an average 72 cents in 2021

Where to find the best AUDUSD cash rate

In Australia, the best cash rates are found in major cities. We regularly check the main money changers in each CBD to find out the best exchange rates in town.

Will coronavirus affect cash collection?

Supply of money might be impacted. Make sure you seek out your money changer to make sure your currency is available ahead of time.

How to track down the best cash rate

You can either walk around to each money changer, try and call each one and check their rate or you can use our city and suburb guides:

Compare international money transfer exchange rates

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.

By Natalie Robertson Updated June 8th, 2020