The AUD to MYR exchange rate is currently range-bound, reflecting a stable trading environment with limited volatility.
Key drivers influencing this trend include the interest rate differential, as the Reserve Bank of Australia is expected to raise rates, while the U.S. Federal Reserve anticipates cuts, which may narrow the differential in favor of the MYR. Additionally, Malaysia's strong economic fundamentals and improving fiscal position support the ringgit, suggesting upward pressure on its value. Global trends in de-dollarization may also boost investor confidence in the MYR.
The near-term range is likely to remain in line with recent trading patterns, hovering around the 2.70 area, which is close to recent lows. An upside risk could emerge from a more aggressive hike in Australian rates, while a downside risk may arise from any unexpected downturn in the oil market, which typically impacts the MYR’s performance.