AUD/PKR Outlook: Slightly positive, but likely to move sideways, as the rate is above its recent average but lacks a clear driving factor.
Key drivers:
• Rate gap: The Reserve Bank of Australia's potential interest rate hikes contrast with the Pakistani central bank's projected gradual depreciation of the PKR, supporting the AUD.
• Risk/commodities: Recent improvements in oil prices reflect positively on the AUD due to its commodity currency status, although volatility remains a concern.
• One macro factor: China's economic recovery has recently boosted Australian exports, enhancing demand for the AUD amidst the ongoing trade relationship.
Range: The AUD/PKR is likely to drift within its recent range, remaining stable without significant fluctuations.
What could change it:
• Upside risk: Strengthened economic indicators from Australia, such as improved employment data, may push the AUD higher.
• Downside risk: A continued decline in commodity demand, particularly from China, could pressure the AUD against the PKR.
