Australian Dollar to US Dollar Forecast: AUD/USD Exchange Rate Could Drop Next Week

  • Posted on

100 Hundred United States Dollars (USD)

Over the course of the first trading day of 2015, the Australian Dollar to US Dollar (AUD/USD) exchange rate plummeted by 0.9%.

The ‘Aussie’ dived against its US peer as Chinese manufacturing data added to concerns regarding the slowdown in one of the world’s largest economies and commodity prices struggled.

According to one industry expert from the National Australia Bank, the softness in the AUD/USD pairing is more to do with US Dollar strength. The NAB’s Ivan Colhoun also estimated that the Australian Dollar could fall to as low as 78 US cents before the close of the year.

Meanwhile, forex strategist Lee Hardman said of the ‘Greenback’s performance; ‘The Dollar is continuing to derive support from the relative outperformance of the US economy and building investor expectations of widening monetary policy divergence between the Fed and other major central banks.’

Australian Dollar to US Dollar (AUD/USD) Exchange Rate Forecast

Next week a number of factors will dictate the movement taken by the Australian Dollar to US Dollar (AUD/USD) exchange rate.

Of course, any spikes in the commodity market will be of interest, with further slides in the price of crude oil and iron ore likely to weigh on the ‘Aussie’.

Investors will also be paying attention to the week’s main economic reports for Australia.

The AiG Manufacturing Index is believed to have fallen from 50.1 to 48.5 in December. If the measure has indeed dipped below the 50 mark separating growth from contraction, it could cause Australian Dollar declines.

The AiG Construction Index for December, due out on Wednesday, will be of similar importance.

Other figures to be aware of include Australia’s Trade Balance and New Home Sales numbers.

However, volatility in the AUD/USD exchange rate is far more likely to be occasioned by the week’s major US reports – most notably the US Non-Farm Payrolls stat.

Another month of strong employment gains would further support the case for the Federal Reserve adjusting borrowing costs in the first three months of 2015 and would drive the Australian Dollar to US Dollar exchange rate lower before the weekend.

The Australian Dollar to US Dollar (AUD/USD) exchange rate was trading in the region of 0.8102.

The US Dollar to Australian Dollar (USD/AUD) exchange rate was trading in the region of 1.2336.

« Previous Story

Australian Dollar to US Dollar Exchange Rate Today: AUD/USD Surges 0.7%

Next Story »

Australian Dollar to US Dollar (AUD/USD) Exchange Rate near Parity on Gold Prices

Disclaimer: and its data provider, TorFX, make no claims regarding the validity or exactness of the information provided in on this site and will not be held liable for any use, interpretation, or other implementation of the information provided. make no warranties, express or implied, as to results to be obtained from use of such information, and make no express or implied warranties of condition, quality, performance, merchantability or fitness for a particular purpose or use. shall not have any liability for the accuracy of the information contained in the services provided or ommissions there in which are made available on a free, as-is basis. None of the aforementioned parties shall be liable for any third party claims or losses of any nature, including, but not limited to, lost profits, punitive, consequential, special, incidental, indirect or similar damages even if advised of the possibility of such damages. Rates offered are interbank rates and may not be the same as offered by your financial institution, and do not include commissions. Rates shown on this site will vary from those provided by TorFX or other providers linked to from this site.