The AUD to THB exchange rate remains range-bound, trading near its 3-month average.
Key drivers include:
- Interest rate expectations are shifting, with the Reserve Bank of Australia likely to raise rates due to rising inflation, which could support the AUD.
- The Thai baht may strengthen as capital inflows linked to a robust current account surplus counteract export challenges, influenced by a strong baht.
- The oil price movement is a factor; a recent decline in oil prices could pressure the THB, impacting overall market sentiment.
In the near term, the exchange rate is expected to trade within a stable range, reflecting recent patterns.
Upside risks for the AUD include stronger commodity prices boosting demand, while a downside risk could stem from heightened risk aversion in global markets affecting the AUD negatively. For the THB, a slowdown in economic growth might lead to further currency fluctuations.