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The data on this page are predictions made by finance experts in July 2015 regarding the status of the Australian dollar, although these experts can give their predictions on what may happen in the future there is no way to predict with accuracy what will happen to any particular currency in the future.
So when looking at the data around exchange rates it can be tricky if you don't do it very often, if you are looking to exchange foreign currency into Australian dollars or Australian dollars into another currency it can get confusing as to which rate to look at.
As an example if you are looking at converting AUD to USD you will need to look at the rate that is most usually referred to by experts as the USD exchange rate, however if you have USD to exchange back into AUD you will need to look at the rate experts would usually explain is how much AUD can you buy with USD.
The Australian Dollar is expected to continue to fall, which is bad news for Australians travelling overseas this summer, as well as online shoppers of international retailers. The finder.com.au Australian Dollar Survey of 13 leading experts found that the average forecast for the Aussie Dollar is expected to hit US$0.71 by the end of 2014. And it doesn't stop there. The majority of these experts are also forecasting the Australian Dollar to reach between US$0.60 and US$0.70 in 2016.
Our resident Australian Dollar Expert Forecasts
Find out what each of our experts predicts for the Australian Dollar and their detailed forecast explanations
|Name||Company||How low will the Australian Dollar go by the end of the year?||How low do you think it will go and when will it hit this?|
|Garry Shilson-Josling||AAP||US$0.67||US$0.62 by Q3 2016|
|Shane Oliver||AMP Capital||US$0.70||US$0.65 by 2018|
|David Bassanese||BetaShares||US$0.68||US$0.62 by 2017|
|Chris Caton||BT Group||US$0.72||US$0.68 by mid 2016|
|Andrew Wilson||Domain Group||US$0.70||US$0.65 to US$0.70 will be the lowest it hits|
|Shane Garrett||Housing Institute of Australia||US$0.76||US$0.69 by mid 2016|
|Peter Jones||Masters Builders Australia||US$0.75||US$0.70 by mid 2016|
|Katrina Ell||Moody'a Analytics||US$0.72||US$0.70 by Q3 2016|
|Ken Sayer||Mortgage House||US$0.65||US$0.60 by 2017|
|Linda Janice Phillips||Propell||US$0.80||US$0.80 by Q4, 2015|
|Noel Whittaker||QUT Business School||US$0.68||US$0.60 will be the lowest it will go|
|Janu Chan||St George Bank||US$0.73||US$0.72 by Q1, 2016|
Australian Dollar History
Importance of the Australian Dollar
With only a finite amount of airtime available on a nightly news broadcast, there are many newsworthy events that don’t make the final cut. However, there is one constant throughout and its focus is on the movement of a single rate. The Australian dollar is a rate worth watching. It’s a clear indication to consumers of Australia’s financial performance on the world stage. So, what exactly does it mean when the numbers are up, or when they’re down?
When the dollar is high
The Australian dollar has fluctuated greatly since its introduction as a currency in 1966. It’s considered ‘high’ the closer it comes to being on par with the US Dollar. When the dollar is high:
- Consumers can take advantage of cheaper international shopping
- Small businesses can import international goods at lower costs
- An increase in living standards across Australia due to the availability of better quality goods at reduced costs
- The RBA is less likely to rise the cash rate when the dollar is high
- Cheaper travel for Aussies, meaning more bang for your buck when you decide to go overseas
When the dollar is low
Just as the Aussie dollar has its highs, it also has its lows. The further the dollar edges away from the US dollar (usually anything below $US0.90), the lower its value is considered to be. When the dollar is low:
- Buying internationally is more expensive
- It’s good news for small businesses as this usually encourages domestic spending
- Business exporters can also win, as there is increased competitiveness because of the lower exchange rate
- Those in the tourism industry benefit because of international tourists taking advantage of favourable exchange rates and Aussie tourists looking to save money by vacationing at home
Depending what side of the Aussie dollar fence we’re on, the grass might seem greener for some than others. Keeping track of the changes can help you better understand how far your own dollars will go, and the best way to help them go even further.
Disclaimer: The forecasts, projections and other predictive statements by the panel of experts are assumptions based on information available at the time of running our survey in July 2015. These forecasts are based on industry trends and economic factors that involve risks, variables and uncertainties. No guarantee is presented or implied as to the accuracy of these forecasts and consumers are advised to read product disclosure statements and understand if financial products are right for them before signing up.