The market bias for the AUD to SGD exchange rate is currently range-bound.
Recent drivers impacting the Australian dollar include the anticipated rise in interest rates by the Reserve Bank of Australia, which could influence the AUD positively as a response to inflation concerns. Meanwhile, commodity prices have risen, supporting the AUD, given its status as a commodity currency. The risk sentiment remains cautious due to global market dynamics, which may limit the currency's upside potential.
In contrast, the Singapore dollar is buoyed by strong economic growth forecasts and a stable monetary policy from the Monetary Authority of Singapore, suggesting a solid foundation for the SGD.
The expected trading range for the AUD/SGD over the next few months is likely to remain within established levels, reflecting current stability in the market. An upside risk for the AUD is strong commodity demand, while a downside risk might arise from renewed geopolitical tensions, affecting global investor sentiment.
