AUD/MYR Outlook:
Slightly positive, but likely to move sideways, as the rate is above its recent average yet lacks a clear driver.
Key drivers:
• Rate gap: The Reserve Bank of Australia's recent rate hike aims to control inflation, providing a stronger backdrop for the AUD compared to the Malaysian Ringgit's stable positioning.
• Risk/commodities: Oil prices are currently high, which often supports the AUD due to its status as a commodity currency, benefiting from increases in export values.
• Macro factor: China's economic support measures have bolstered demand for Australian exports, positively impacting the AUD.
Range:
Expect AUD/MYR to hold steady within its recent range of fluctuations.
What could change it:
• Upside risk: A further increase in commodity prices could provide a stronger boost to the AUD.
• Downside risk: A significant dip in global risk appetite could pressure the AUD lower.