AUD/PKR Outlook: The outlook for AUD/PKR is slightly positive, but likely to move sideways as the rate is above its recent average but lacks a clear driver for significant movement.
Key drivers:
• The Reserve Bank of Australia is signaling potential interest rate increases, supporting strength in the Australian dollar (AUD) compared to the State Bank of Pakistan’s cautious stance.
• Although oil prices remain stable, the overall commodities market has created a neutral effect on the AUD, given China's uneven recovery impacting Australian exports.
• Upcoming Australian inflation data may lead to shifts, but current expectations are already reflected in the AUD's performance.
Range: AUD/PKR is likely to hold within its recent range, as recent trading has shown volatility without a clear direction.
What could change it:
• An unexpected increase in Australian inflation could boost the AUD further against the PKR.
• Any significant depreciation of the Pakistani rupee, driven by political or economic instability, could weigh on the AUD/PKR exchange rate.
