The AUD to PHP exchange rate currently exhibits a bullish bias.
Key drivers include:
- Interest Rate Differential: The Reserve Bank of Australia’s expected interest rate hikes could strengthen the AUD compared to the Bangko Sentral ng Pilipinas' recent rate cuts, making the AUD more attractive to investors.
- Risk Sentiment: As a commodity currency, the AUD benefits from rising global demand for raw materials, positively impacting its value against the PHP.
- Economic Growth: The positive outlook on Australia's economy contrasts with downward revisions of growth forecasts for the Philippines, suggesting stronger support for the AUD.
In the near term, the AUD is likely to trade within a steady range relative to its recent levels.
Upward pressure could arise from better-than-expected Australian economic data or stronger commodity prices. Conversely, a major shift in U.S. monetary policy or further declines in Philippine economic performance could hinder AUD gains against the PHP.