The AUD to PHP exchange rate has a bullish bias with recent forecasts indicating potential further strengthening of the Australian dollar.
Key drivers include:
- The anticipated interest rate hike by the Reserve Bank of Australia could make the AUD more attractive to investors compared to the Philippine peso.
- The Philippine peso has recently weakened significantly, influenced by the Bangko Sentral ng Pilipinas cutting rates amid economic challenges, which may lead to a bearish outlook for the currency.
- Concerns over the Philippines' governance and economic growth also contribute to a weaker PHP, despite a forecast for some stabilization.
Over the next 1–3 months, the AUD to PHP may trade higher, remaining above its recent average. An upside risk includes stronger-than-expected economic data from Australia, while a downside risk could arise if geopolitical tensions or economic policies shift adversely in the region.