Bias: The AUD/DKK is currently bullish-to-range-bound, sitting above the 90-day average and in the upper half of the 3-month range.
Key drivers:
• Rate gap: The Reserve Bank of Australia's discussions on future interest rate hikes may strengthen the Australian dollar against the Danish krone, especially given Denmark's recent interest rate cut to align with the European Central Bank.
• Risk/commodities: A weak oil market and subpar Chinese inflation figures could impact demand for Australian exports, creating downward pressure on the AUD against the DKK.
• One macro factor: Upcoming Australian economic indicators, particularly the Consumer Price Index and Labour Force report, could significantly influence the AUD's trajectory.
Range: The AUD/DKK is likely to drift within the recent range, potentially testing higher levels if positive data emerges.
What could change it:
• Upside risk: Strong Australian economic data could boost the AUD further.
• Downside risk: Continued poor performance in China's economy might weaken demand for Australian goods, negatively impacting the AUD.