AUD/HKD Outlook:
The AUD/HKD exchange rate is likely to increase as it is currently trading well above its recent average and showing strength near recent highs, supported by robust Australian economic data.
Key drivers:
• Rate gap: The Reserve Bank of Australia's tightening stance contrasts with the more stable policies of the Hong Kong Monetary Authority, favoring the AUD.
• Risk/commodities: Strengthening demand for Australian commodities like iron ore due to China's recovering economy supports the AUD.
• Macroeconomic factor: Strong domestic employment figures in Australia indicate a healthy job market, boosting confidence in the AUD.
Range:
Expect the AUD/HKD to hold its existing strength within its recent range, potentially testing new highs.
What could change it:
• Upside risk: A continuation of strong economic indicators from Australia could drive the AUD even higher.
• Downside risk: A significant shift in global market risk appetite may lead to volatility and pressure on the AUD.