What's going on with AUDUSD in 2023?

Don't miss our 2023 AUDUSD forecast! The Australian Dollar is facing headwinds yet again against the US Dollar, as the central bank divergence theme is back in play in early 2023.

What happened to AUD/USD?

The AUD/USD pair kept falling in the last few days, reaching a fresh multi-week low of 0.7263 on Friday, to close the trading week a handful of pips above it. EUR/USD rebounded during the American session and climbed to 1.0715 as the US Dollar retreated, accompanied by lower Treasury yields.

What happened to the Australian dollar in August 2022?

While there was a slight increase in the Australian dollar in August 2022 to 0.71—which foreign exchange analysts at JP Morgan backed as a sign that the AUD/USD exchange rate could remain steady at 0.70 by the end of the year —the US dollar actually rose back to an average 1.49 compared to the Australian dollar throughout September.

What drives the Aud to a lower level in 2022?

“Other factors that drive the AUD are commodity prices, interest rate differentials, and external trade balance,” Zaman says–but in 2022, the dominant driver of the downwards move was the strong US dollar.