Australian Dollar Forecast

"The tug-of-war between the China slowdown and RBA policy normalization is likely to be the key theme for AUD in 2022" - Bank of America.

The U.S. Dollar is forecast by HSBC to continue a run of outperformance in 2022, but the Australian Dollar also looks set to appreciate say analysts at the UK-based global lender.

It could be time for the Australian Dollar to give back some of last week's impressive rally say a couple of investment bank analysts we follow.

GBP/AUD could potentially struggle this week to get back above even the nearby 1.86 handle.

The Australian Dollar is forecast to rise in 2022 by analysts at global lender and investment bank ING, but it also faces the greatest downside risks of its G10 peers.

GBP/AUD benefiting from USD’s Fed-driven uplift and may attempt recovery of 1.86, if USD rises further.

Charts of GBP/AUD show bullish technical patterns amidst a bull flag and channel breakout.

Studies of GBP/AUD charts indicate an ambiguous outlook with the possibility of a reversal despite the downtrend remaining dominant.

Commonwealth Bank of Australia forecast the Australian Dollar to come under pressure over the remainder of 2021, but they forecast a recovery against the Dollar, Pound and Euro shaping up for 2022.

In spite of recent recovery GBP/AUD remains in a downtrend and a break below 1.82 lows is required to confirm continuation.

GBP/AUD rate is trading at around 1.8200 at the time of writing after falling 1.15% in the week before. Studies of the charts suggest the pair will continue falling in line with the dominant downtrend.

GBP/AUD in short-term downtrend with no signs yet of reversal but a major support level could underpin current prices.

Soft Chinese data hampers AUD and allows GBP/AUD to rebound, but charts suggest bounces will be shallow.

The Pound-to-Australian Dollar exchange rate starts the new week higher, although the Reserve Bank of Australia's Tuesday policy meeting will likely set the tone for the remainder of the week.

GBP/AUD is seen moving higher and studies suggest the path of least resistance remains to the upside.

Strategists at RBC Capital Markets have anointed GBP/AUD as the "trade of the week", saying they are going "long".

The outlook for the Australian Dollar has improved and upside risks are starting to build, according to a new research update from CBA.

The Pound-to-Australian Dollar rate entered the holiday-shortened week on its front foot and with scope to rise as far 1.90 or slightly above over the coming days, although Sterling could be pressured lower into a retest of support at 1.88 later this week in the event of further U.S. Dollar declines.

Australia's Dollar was on the back foot in the penultimate session of the week but had risen against currencies of most Australian trade partners for the week overall in a sign it could be bottoming after a lengthy run of losses, although many forecasts suggest a recovery remains some way off.

The near-term outlook has turned less favourable for the Australian Dollar say economists at Wells Fargo in their latest global economic and exchange rate forecast update, although they remain of the view the currency will ultimately trend higher in 2022.