# Australian dollar tipped to hit 80 US cents on back of coronavirus recovery and China's demand for steel - ABC News

> Australian banks forecast the Australian dollar could climb to between 78 and 82 US cents, driven by iron ore prices, Chinese steel demand, and a weaker US dollar. The currency is at a 2.5-year high of about 76 US cents despite the pandemic.

- Date: 2020-12-22 · published 2020-12-22T12:00:00.000Z
- Category: macro · region Australia · magnitude low
- Page: https://feedsoft.ai/events/49898-australian-dollar-tipped-to-hit-80-us-cents-on-back-of-coronavirus-recovery-and
- Commodities: [Barley](https://feedsoft.ai/c/BARLEY.md), [Wheat (SRW)](https://feedsoft.ai/c/WHEAT.md)

## Why it matters

A stronger Australian dollar makes Australian grain and barley exports less competitive, which can modestly support prices for competing origins.

## Read by commodity

- WHEAT: bullish ▲
- BARLEY: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| WHEAT | 2020-12-22 | [2021 Australian Dollar forecasts upgraded as the AUD soars to new highs - S Money](https://feedsoft.ai/events/49900-2021-australian-dollar-forecasts-upgraded-as-the-aud-soars-to-new-highs-s-money.md) | +0.2% | +7.6% |
| WHEAT | 2022-02-14 | [Dollar strengthens on Bullard rate comments, Ukraine concerns](https://feedsoft.ai/events/42875-dollar-strengthens-on-bullard-rate-comments-ukraine-concerns.md) | +0.3% | +14.4% |
| WHEAT | 2021-03-10 | [Food prices rise globally as countries compete to replenish stockpiles, bad weather hits crops - ABC News](https://feedsoft.ai/events/8631-food-prices-rise-globally-as-countries-compete-to-replenish-stockpiles-bad.md) | -0.4% | -0.6% |
| WHEAT | 2018-08-02 | [Australian volume needed as Asia seeks extra 20Mt of wheat - Grain Central](https://feedsoft.ai/events/63425-australian-volume-needed-as-asia-seeks-extra-20mt-of-wheat-grain-central.md) | +3.5% | +1.5% |
| WHEAT | 2026-01-29 | [What the sinking U.S. dollar means to Canada and world](https://feedsoft.ai/events/21288-what-the-sinking-u-s-dollar-means-to-canada-and-world.md) | -0.5% | +3.1% |

## Sources

- abc.net.au: https://www.abc.net.au/news/2020-12-23/australian-dollar-forecast-to-surge-due-to-covid-recovery-steel/13008130

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.