AUD/DKK Outlook:
Likely to increase, as the rate sits significantly above its recent average and near 90-day highs.
Key drivers:
• Rate gap: The Reserve Bank of Australia's recent rate hike contrasts with Danmarks Nationalbank's rate cuts, boosting the Australian dollar.
• Risk/commodities: Rising commodity prices, particularly from Australia’s exports, strengthen the AUD against the DKK.
• Macro factor: Unexpected inflation data from Australia has led to heightened expectations for further monetary tightening, supporting the AUD.
Range:
Expect the AUD/DKK to test the upper limits of its recent range, reflecting upward momentum.
What could change it:
• Upside risk: A continuation of strong commodity demand could push the AUD higher.
• Downside risk: Any decision by the Danish central bank to raise rates unexpectedly might weaken the AUD against the DKK.