The AUD to SGD exchange rate shows a bullish bias. Key drivers include the anticipated rise in interest rates by the Reserve Bank of Australia (RBA), potentially reaching 3.85% by early 2026, making the AUD more attractive to investors. Positive economic outlooks for Australia, spurred by the strength in commodity exports, also support the AUD's strength. In contrast, Singapore's monetary authority has kept their policies unchanged, indicating a more stable but less aggressive approach to interest rates.
Expect the AUD to trade within a range slightly above recent averages over the next few months. Upside risks include continued strength in commodity prices, which could further boost the AUD. Conversely, a downside risk could arise from any global economic instability or negative sentiment that prompts investors to flee to safe-haven currencies, potentially weakening the AUD against the SGD.
