The AUD to SGD exchange rate currently shows a bullish bias, recently climbing to 7-day highs near 0.8611.
Key drivers include:
- Interest rate expectations suggest the Reserve Bank of Australia (RBA) may raise rates in 2026 amid rising inflation, which could attract foreign investment and support the AUD.
- Singapore’s growth forecast has improved to 2.3% for 2026, fostering a strong economic outlook for the SGD, but it faces a contrasting monetary policy stance with the RBA.
- The AUD benefits from its status as a commodity currency; higher global commodity prices can further enhance its value.
In the near term, the AUD/SGD is expected to trade within a stable range, staying resilient but not extending beyond recent highs.
Upside risk stems from stronger-than-anticipated commodity demand, while downside risk may arise if geopolitical tensions or global uncertainties amplify, leading to safe-haven flows into currencies like the USD.