AUD/IDR Outlook:
The AUD/IDR is likely to increase as it is currently trading above its 90-day average and near recent highs. Strong commodity prices and improved economic indicators are supporting the Australian dollar's rise.
Key drivers:
- Rate gap: The Reserve Bank of Australia has raised interest rates recently, increasing the rate gap with Bank Indonesia, which has kept rates steady.
- Risk/commodities: Rising commodity prices, including gold, strengthen the AUD as Australia benefits from higher export revenues.
- One macro factor: China's manufacturing sector is expanding, positively affecting demand for Australian exports, which bolsters the AUD.
Range:
Expect the AUD/IDR to hold within the current market range, possibly testing the upper extreme.
What could change it:
- Upside risk: Additional interest rate hikes from the RBA could further strengthen the AUD.
- Downside risk: Increased geopolitical tensions could cause investors to turn to safer currencies, weakening the AUD.