AUD/USD Forecast Poll
The FXStreet Forecast Poll about AUD/USD (Australian Dollar US Dollar) is a sentiment tool that highlights our selected experts' near and medium term mood and calculates trends according to Friday's 15:00 GMT price.
How to Read the Forecast Poll charts
This chart informs about the average forecast prices, and also how close (or far apart) sit the numbers from all participants surveyed that week. The bigger a bubble on the chart means more participants targeting a certain price level in that particular time horizon. This distribution also tells if there is unanimity (or disparity) among participants.
Each participant's bias is calculated automatically based on the week's close price and recent volatility. Drawing from those results, this chart calculates the distribution of bullish, bearish, and sideways forecast prices from all participants, informing about sentiment extremes, as well levels of indecision reflected in the number of “sideways”.
By displaying three central tendency measures (mean, median, and mode), you can know if the average forecast is being skewed by any outlier among the poll participants.
In this chart, the close price is shifted behind so it corresponds to the date when the price for that week was forecasted. This enables the comparison between the average forecast price and the effective close price.
This chart tracks the percentage change between the close prices. Bouts of volatility (or extreme flat volatility) can be then compared to the typical outcome expressed through the averages.
This measure is basically an arithmetical average of the three central tendency measures (mean, median, and mode). It smooths the typical outcome eliminating any possible noise caused by outliers.
Together with the close price, this chart displays the minimum and maximum forecast prices collected among individual participants. The result is a price corridor, usually enveloping the weekly close price from above and below, and serves as a measure of volatility.
AUD/USD, THE “AUSSIE”
The AUD/USD pair tells the trader how many US dollars (the quote currency) are needed to purchase one Australian dollar (the base currency). This currency pair is also known as the "Aussie". Together with the New Zealand Dollar and the Canadian Dollar, the AUD is a commodity currency, that is a currency whose country's exports are largely comprised of raw materials (precious metals, oil, agriculture, etc.).
The interest rates set by the Reserve Bank of Australia (RBA) have been among the highest of industrialized countries and the relatively high liquidity of the AUD has made it an attractive tool for carry traders looking for a currency with the highest yields. These factors made the AUD very popular among currency traders.
ORGANIZATIONS, PEOPLE AND ECONOMIC DATA THAT INFLUENCE AUD/USD
The organizations and people that affect the most the moves of the AUD/USD pair are:
- Reserve Bank of Australia that issues statements and decides on the interest rates of the country.
- Australian Government and its Department of Finance that implement policies that affect the economy of the country.
- The US Government: events as administration statements, new laws and regulations or fiscal policy can increase or decrease the value of the US Dollar.
- Fed, the Federal Reserve of the United States. The Fed controls the monetary policy, through active duties such as managing interest rates.
- Currencies: This group includes the following currency pairs: EUR/USD, GBP/USD, USD/JPY, NZD/USD, USD/CAD, EUR/GBP and USD/CHF
FORECAST FOR 2022
Some extra quotes about forecast in this page:
Despite Aussie Dollar remains relatively stronger than other currencies, US Dollar strength will probably add bearish pressure in 2022.
The AUD/USD may benefit from being over-sold, but its positioning for recovery is weak, to say the least. The RBA dropped its yield-curve-control policy back in November 2021 but has remained largely dovish when it comes to its monetary policy and forward guidance. The AUD is set to move towards the 0.60 level by the end of 2022 and can only hope to be supported by an increase in energy prices should the pandemic restrictions be completely lifted.