Forecasts for AUD to MYR
The Australian dollar (AUD) has recently experienced volatility influenced by geopolitical factors and market sentiment. Analysts noted that the AUD dropped amid renewed tariff fears after U.S. President Donald Trump announced a 10% tariff on Australian imports. However, it managed to regain some ground later as market participants began anticipating a potential interest rate cut from the Federal Reserve, which is generally seen as supportive for risk assets like the AUD. Despite this rebound, the lack of significant Australian economic data leaves the currency vulnerable to shifts in overall market sentiment.
On the other side, the Malaysian ringgit (MYR) faces challenges due to a particularly harsh tariff imposed by the U.S., which has set a 24% rate on Malaysian goods. Economists suggest that this move exacerbates fears of a global trade war and negatively impacts emerging Asian currencies, including the MYR. The Malaysian government is seeking to engage with international partners while refraining from retaliation, aiming to coordinate a regional response to Trump's tariffs.
Current exchange rate data shows that AUD to MYR stands at 2.7574, just below its three-month average, and has fluctuated within a relatively stable range of 6.4% from 2.6652 to 2.8369. The prevailing market volatility is further influenced by rising oil prices, with Brent Crude OIL/USD trading at 74.23, which is significantly above its three-month average of 66.94. This rise in oil prices generally supports the MYR, given Malaysia's status as a major exporter of oil.
Overall, the outlook for AUD/MYR remains uncertain. Analysts emphasize that ongoing trade tensions and interest rate expectations will continue to drive the volatility of both currencies, highlighting the importance of monitoring international developments and economic indicators.