AUD/SGD Outlook:
The AUD/SGD is slightly positive, trading 2.5% above its recent average. The recent strong GDP figures from Australia provide some support for the Aussie, albeit amid volatile market conditions.
Key drivers:
• Rate gap: The Reserve Bank of Australia maintains a more accommodating policy compared to Singapore's stronger monetary stance, which supports SGD.
• Risk/commodities: Oil prices are currently above average, which can positively impact the Australian economy and the AUD.
• Macro factor: Australia’s upcoming trade figures are expected to show a widening surplus, potentially boosting AUD demand.
Range:
Expect the AUD/SGD to drift within its stable 3-month range from 0.8529 to 0.9028.
What could change it:
• Upside risk: A significant improvement in global risk appetite could further strengthen AUD against SGD.
• Downside risk: Renewed geopolitical tensions may negatively affect the AUD, leading to increased volatility.