4 Expert Australian Dollar Forecasts for 2020 Compared
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.
In 2020, the 4 banks predict the AUD/USD to be much the same as 2019. By December 2020 NAB and CBA predict the AUD/USD to be around 0.7000.
ANZ is expecting it to be 0.6800, while Westpac has the most negative outlook. They predict the AUD/USD to be 0.6700, not much different from the currency now.
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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:
- 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.
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:
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.