The current market bias for the AUD/SGD exchange rate is bullish. Key drivers include the anticipated increase in interest rates by the Reserve Bank of Australia, as inflation rises above target levels. This upward pressure on the AUD is supported by a positive economic outlook, with forecasts suggesting a strong recovery in Australian exports. Meanwhile, the Singapore Dollar benefits from stable growth and unchanged monetary policy from the Monetary Authority of Singapore.
Over the next 1–3 months, the AUD/SGD is expected to trade within a higher range, reflecting its recent strength above average levels. Upside risks include unexpected economic growth in China, which could boost demand for Australian commodities. In contrast, a sharp downturn in global risk sentiment could lead to a decline in the AUD as investors shift towards safer currencies.