The AUD to MXN exchange rate is currently range-bound.
Key drivers include:
- The Reserve Bank of Australia is expected to raise interest rates due to rising inflation, making the AUD relatively attractive.
- The Mexican peso is supported by forecasts of stable exchange rates and a potential strengthening amid U.S. Federal Reserve easing policies.
- Both economies show mixed growth expectations, with Australia poised for recovery while Mexico faces risks from slower economic activity.
In the near term, the AUD to MXN is expected to trade within a stable range, reflecting its recent fluctuations.
An upside risk for the AUD could arise from stronger-than-expected inflation prompting quicker interest rate hikes from the RBA. Conversely, a downside risk may stem from geopolitical tensions that could drive investors toward safer currencies, potentially weakening the AUD against the MXN.