The market bias for the AUD to IDR exchange rate is currently bullish.
Key drivers include:
- Interest Rate Expectations: With the Reserve Bank of Australia (RBA) expected to raise rates, the AUD may gain attractiveness compared to the IDR, as Bank Indonesia struggles to stabilize its currency amid interventions.
- Economic Outlook: Positive forecasts for the Australian economy are contrasting with challenges facing Indonesia, such as inflation control and currency repatriation efforts.
The near-term range for AUD to IDR is expected to remain above its recent three-month average but within a limited range.
Upside risks include stronger-than-expected commodity prices boosting the AUD. Conversely, a resurgence in global economic tensions or geopolitical issues could weigh on both currencies, particularly the IDR, leading to potential depreciation against the AUD.