The market bias for the AUD to IDR exchange rate is currently range-bound. Key drivers include:
- Interest rate expectations are shifting, with the Reserve Bank of Australia (RBA) anticipated to raise rates in early 2026 due to rising inflation, while Bank Indonesia (BI) aims to maintain stability amid global pressures.
- A recent increase in commodity prices has provided some support for the Australian dollar, reflecting its status as a commodity currency.
- Indonesia's proactive measures to stabilize the rupiah, including central bank interventions, seek to address its recent depreciation.
In the near-term, the AUD to IDR exchange rate is expected to remain within a stable trading range influenced by these factors. Upside risks may arise if the RBA continues its hawkish stance, while downside risks include potential shifts in global risk sentiment, which could negatively impact the Australian dollar.