AUD/PKR Outlook:
The AUD/PKR rate is currently above its recent average and nearing recent highs, indicating a bullish outlook. Support from rising commodity demand can help maintain this positive trend.
Key drivers:
• Rate gap: The Reserve Bank of Australia’s tightening stance contrasts with the State Bank of Pakistan's stable policy rate, which supports the AUD.
• Risk/commodities: As global oil prices continue to fluctuate, stronger demand for Australian exports like iron ore and coal boosts the AUD against the PKR.
• One macro factor: Recent data showing improvement in Australia's employment figures points to robust economic health, further supporting the currency.
Range:
Expect the AUD/PKR to hold above recent averages while potentially testing recent highs within its 3-month volatility range.
What could change it:
• Upside risk: Strong Australian economic indicators or significant increases in commodity prices could further elevate the AUD.
• Downside risk: Unexpected geopolitical tensions or adverse economic news from Australia might pressure the AUD lower against the PKR.
