Is Australia a bearish EUR/AUD forecast?

The weakness of the euro against the Australian dollar seems to indicate a bearish EUR/AUD forecast, as investors expect the island nation to showcase better economic growth compared to its European counterpart. Capital.com’s Cingari summed up the market sentiment on 3 August 2022:

Why is the EUR/AUD forecast weak in 2022?

The European Central Bank’s ( ECB) hesitation in hiking interest rates before the July meeting and Europe’s geopolitical woes have resulted in widespread weakness in the euro against nearly all G-10 currencies. In this article we take a look at European and Australian economies and other factors shaping a EUR/AUD forecast for 2022 and beyond.

What will CBA predict in the next 12 months?

CBA economists have predicted a much more tepid recovery over the next 12 months. The bank predicts the exchange rate would slip over the next quarter to June 2023, and to reach 0.68 by June 2024.

Is the AUD/USD exchange rate in agreement with the Big Four?

Other banks in the Big Four were in agreement, with Westpac forecasting the AUD/USD exchange to reach 0.70 by June 2023. That view was optimistic, with the exchange rate coming in at 0.66 as of July 7. In July, the Australian dollar steadied around $0.667 despite the RBA voting to hold the cash rate steady at its July Board meeting.