AUD/PKR Outlook:
The AUD/PKR exchange rate is likely to decrease, currently trading near recent lows and above its 90-day average. Geopolitical tensions are pushing the AUD down.
Key drivers:
• Rate gap: The Reserve Bank of Australia has maintained lower interest rates compared to the State Bank of Pakistan, which benefits the PKR.
• Risk/commodities: Oil prices are rising, negatively impacting Australia’s import costs and reducing support for the AUD.
• One macro factor: Ongoing geopolitical tensions, particularly between the US and Iran, are creating negative pressure on the AUD as investors seek safer assets.
Range:
Expect the AUD/PKR to drift within its recent range, potentially testing the lows if geopolitical concerns persist.
What could change it:
• Upside risk: A significant improvement in global risk appetite could support the AUD.
• Downside risk: Continued geopolitical instability may further weaken the AUD against the PKR.