AUD/THB Outlook:
The AUD/THB is likely to increase as the rate is currently trading above its recent average and near recent highs. Increased interest rate expectations for Australia strengthen the AUD further.
Key drivers:
• Rate gap: The Reserve Bank of Australia has recently raised interest rates, which supports a stronger AUD compared to the Thai Baht.
• Risk/commodities: With oil prices significantly above average, this benefits the AUD as Australia's economy is closely linked to commodity prices, enhancing its appeal.
• Macro factor: Strong inflation data in Australia raises the likelihood of further monetary tightening, providing additional support to the AUD.
Range:
Expect the AUD/THB to drift towards recent highs while remaining within its stable trading range.
What could change it:
• Upside risk: If global demand for Australian commodities continues to rise, this could drive the AUD higher.
• Downside risk: Should the Thai government introduce measures to control the baht's appreciation more aggressively, this may negatively impact the AUD/THB rate.