The current market bias for the AUD to SBD exchange rate is bullish, supported by expectations of rising interest rates in Australia.
Key drivers include the anticipated interest rate hike by the Reserve Bank of Australia, projected to increase to 3.85% in February 2026 in response to higher inflation. Additionally, the positive outlook on economic growth in Australia, driven by strong commodity demand, strengthens the AUD. Meanwhile, the Solomon Islands dollar is influenced by an expansionary monetary policy to stimulate growth and a newly approved budget focusing on infrastructure.
The near-term trading range for AUD to SBD is expected to remain stable, reflecting its recent performance above the three-month average. Potential upside could arise from further aggressive monetary policies by the RBA. Conversely, a significant downturn in global commodity prices or unforeseen security issues could introduce downside risks to the exchange rate.