# Market economists tip Australian currency to hit US80¢

> Market economists are forecasting the Australian dollar could reach US80 cents. The currency rose as high as US73.81 cents on Monday, its strongest level since December 2018, after the Federal Reserve's shift to a higher inflation tolerance weakened the US dollar. Robust demand for Australian iron ore also supported the currency.

- Date: 2020-08-31 · published 2020-08-31T12:00:00.000Z
- Category: macro · region Global · magnitude low
- Page: https://feedsoft.ai/events/51891-market-economists-tip-australian-currency-to-hit-us80
- Commodities: [Australian Dollar (USD per AUD)](https://feedsoft.ai/c/AUDUSD.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

A weaker US dollar and a stronger Aussie tend to lift dollar-denominated commodity prices, which supports import costs for Australian feed buyers. The currency move is driven by Fed policy rather than grain supply.

## Read by commodity

- DXY: bearish ▼
- AUDUSD: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2018-03-04 | [Currency markets send a warning on the US economy](https://feedsoft.ai/events/66191-currency-markets-send-a-warning-on-the-us-economy.md) | -0.6% | -0.8% |
| DXY | 2020-03-09 | [US dollar market sees major sell off as currency traders buy EUR](https://feedsoft.ai/events/10776-us-dollar-market-sees-major-sell-off-as-currency-traders-buy-eur.md) | +3.2% | +6.6% |
| DXY | 2022-01-13 | [Australia, NZ dollars look to break higher as US$ retreats - Markets - Business Recorder](https://feedsoft.ai/events/43388-australia-nz-dollars-look-to-break-higher-as-us-retreats-markets-business.md) | +0.1% | +0.2% |
| DXY | 2020-12-30 | [Australian, NZ dollars on the rise as US$ crumbles - Markets - Business Recorder](https://feedsoft.ai/events/49897-australian-nz-dollars-on-the-rise-as-us-crumbles-markets-business-recorder.md) | -0.6% | +0.4% |
| DXY | 2019-06-19 | [Asia markets: The Fed, US-China trade, currencies in focus](https://feedsoft.ai/events/9812-asia-markets-the-fed-us-china-trade-currencies-in-focus.md) | -1.1% | -0.9% |

## Sources

- afr.com: https://www.afr.com/markets/currencies/market-economists-tip-australian-currency-to-hit-us80-20200831-p55qse

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