AUD/DKK Outlook: The outlook for AUD/DKK is likely to increase as it is currently trading above its recent average and near recent highs, supported by strong Australian economic data.
Key drivers:
- Rate gap: The Reserve Bank of Australia is expected to raise interest rates, contrasting with Denmark's recent rate cuts aimed at stabilizing the krone.
- Risk/commodities: A continued rise in commodity prices, especially metals, boosts the Australian dollar's appeal, providing strength against the Danish krone.
- China’s economic recovery shows signs of causing fluctuations in demand for Australian exports, which could influence the AUD further.
Range: The AUD/DKK is likely to hold within its recent stable range, possibly testing the upper extremes as momentum builds.
What could change it:
- Upside risk: A surprising increase in Australian employment data or inflation could prompt a stronger AUD.
- Downside risk: A significant slowdown in China's growth could adversely affect demand for Australian exports, putting pressure on the AUD.