The AUD to IDR exchange rate shows a bullish bias, supported by rising interest rate expectations in Australia. The Reserve Bank of Australia (RBA) is expected to increase rates to combat rising inflation, which will make the AUD more attractive to investors.
In Indonesia, Bank Indonesia has been proactive in managing the IDR, with interventions aimed at stabilizing the currency amid its recent depreciation. However, a potential interest rate hike by the RBA could widen the interest rate differential in favor of the AUD.
The expected trading range for AUD/IDR over the next few months suggests that it will remain above recent averages but may face resistance at higher levels. One upside risk is sustained demand for Australian commodities, which could further boost the AUD. Conversely, a significant global economic slowdown may dampen investor sentiment towards riskier currencies, including the AUD, and negatively impact its value against the IDR.