The market bias for the AUD to IDR exchange rate remains bullish.
Key drivers include:
- Interest rate differential, with the Reserve Bank of Australia expected to raise rates, enhancing the AUD's appeal against the IDR.
- A positive economic outlook for Australia, bolstered by rising commodity demand and inflation concerns.
- Indonesia's proactive measures by Bank Indonesia to stabilize the rupiah amid depreciation pressures.
In the near term, the AUD/IDR is expected to trade within a stable range above its current levels, reflecting its recent strength compared to the three-month average.
An upside risk could arise from stronger-than-expected Australian economic data or continued bullish commodity prices, while a downside risk may stem from further interventions by Bank Indonesia or unexpected global market shocks that could negatively impact risk sentiment.