Forecasts for AUD to MYR
The Australian dollar (AUD) is facing headwinds due to recent developments in global trade and domestic economic policies. After the Reserve Bank of Australia's dovish interest rate cut, the AUD remains constrained, trading at 2.7485 MYR, which is 1.0% below its three-month average of 2.776. Analysts anticipate that the forthcoming publication of Australia’s latest PMIs could indicate a further slowdown in private sector growth. If these figures reflect a continued deceleration, it may exert additional downward pressure on the AUD.
Similarly, the Malaysian ringgit (MYR) is feeling the impact of the trade tensions stemming from U.S. tariffs, with Malaysia facing a 24% tariff on its exports to the U.S. Experts suggest that these tariffs contribute to a worsening outlook for emerging Asian currencies, leading to a decline in overall risk appetite among investors. As a result, currencies like the Thai baht and South Korean won have also experienced notable declines. The recent geopolitical developments have led to fluctuations in the MYR, influenced further by oil price movements. Currently, oil is trading at $64.78, significantly below its three-month average of $68.05, which may affect Malaysia's oil-reliant economy and consequently the strength of the MYR.
Market sentiment remains volatile, particularly amid fears of a potential global trade war, which continue to disturb the currency landscape in the region. In the context of this evolving situation, if the Australian dollar fails to regain momentum amid these pressures while the Malaysian ringgit struggles with the fallout from tariffs and deteriorating confidence in commodity demand, the exchange rate between AUD and MYR could remain under pressure in the short term. Analysts will closely monitor geopolitical developments, economic data releases, and commodity price trends to adjust their forecasts accordingly.
