The Australian dollar (AUD) is currently bearish against the Philippine peso (PHP).
Key drivers include the interest rate differential, with expectations of potential rate hikes by the Reserve Bank of Australia (RBA) in the coming years, which could support the AUD. However, recent disappointing inflation figures from China are raising concerns about demand for Australian exports, impacting the AUD negatively. Additionally, predictions of monetary easing by the Bangko Sentral ng Pilipinas (BSP) are likely to weigh on the PHP.
In the near term, the AUD to PHP rate is expected to trade within a range influenced by recent performance, potentially remaining stable but susceptible to fluctuation.
An upside risk for the AUD includes stronger-than-expected domestic economic indicators from Australia, which could boost its value. Conversely, if China’s economic recovery weakens further, it may lead to a decline in Australian exports, placing additional pressure on the AUD.