The current bias for the AUD to INR exchange rate is mildly bullish. This is primarily due to the following key drivers:
The Reserve Bank of Australia's expected interest rate hike in early 2026 is likely to enhance the AUD's appeal to foreign investors, given the increasing inflation in Australia. Rising commodity prices are also helping to fuel the AUD's strength, especially as Australia is a major exporter of commodities like iron ore and natural gas. Additionally, ongoing positive economic forecasts for Australia support a favorable outlook for the AUD, particularly against the backdrop of anticipated global economic recovery.
In the near term, the AUD to INR exchange rate is expected to remain within a stable range, driven by market sentiment and commodity prices. This stability reflects recent moves, with the AUD trading at 60.19, 2.9% above its 3-month average of 58.5 and within a 6% trading range.
Upside risks include an unexpected surge in commodity prices, while downside risks could arise from heightened global market volatility, which might negatively impact risk-sensitive currencies like the AUD.
