Why was the Australian dollar so strong in 2012

On the longer horizon, the Australian dollar is expected to rise to US75¢ by the end of 2022 , with a wide range of forecasts. Three economists predict the currency will skid as low as 67¢ by December, and the same number see it rising to 80¢.

Since then the Australian dollar has appreciated as the prospects for a recovery in global growth have improved and commodity prices have increased , but it remains well below its 2013 peak. The terms of trade and interest rate differentials are key determinants of the Australian dollar over the medium to longer run.

In 2021, the trend for the Australian dollar is rising, if you agree with the top 4 banks in Australia . ANZ, CBA, NAB and Westpac are all predicting the Australian dollar to average above 75 cents against the US dollar in 2021, about 5 cents higher than in 2020.