The current market bias for the AUD to THB exchange rate is range-bound. Key drivers include the interest rate differential, with the Reserve Bank of Australia expected to raise rates to combat rising inflation, while the Bank of Thailand’s economic outlook suggests a stable but slow growth trajectory. Additionally, the strong baht may impact Thailand’s export growth, creating headwinds for the local economy.
The near-term range for the AUD to THB is expected to remain stable, given the recent trading activity around the 21.00 mark, a value just below its three-month average, characterized by a tight 3.6% range.
An upside risk includes a significant increase in global commodity prices, potentially boosting the AUD, while a downside risk could stem from an unexpected economic slowdown in China, which may affect both currencies negatively. Overall, cautious optimism surrounds these forecasts.
