AUD/IDR Outlook: The outlook for AUD/IDR is slightly positive, but likely to move sideways, as it is above its recent average but lacks a clear driver for further gains.
Key drivers:
• Rate gap: The Reserve Bank of Australia is signaling potential interest rate hikes, which could support the Australian dollar against the Bank Indonesia's recent rate cut aimed at boosting growth.
• Risk/commodities: Oil prices remain relatively stable, supporting the Australian dollar, a commodity currency tied to resource exports.
• One macro factor: Indonesia's economy shows resilience despite global uncertainties, but a weaker rupiah continues to pose challenges.
Range: AUD/IDR is likely to hold within its recent trading range as the rate stabilizes around current levels.
What could change it:
• Upside risk: Stronger than expected economic data from Australia could lead to renewed buying interest in the AUD.
• Downside risk: Increased protests or political instability in Indonesia could further weaken the IDR, affecting the exchange rate.
