The current market bias for the AUD to TWD exchange rate is bullish.
Key drivers include the interest rate expectations, with the Reserve Bank of Australia (RBA) likely to raise rates in early 2026 to combat rising inflation. Additionally, the RBA’s hawkish stance compared to Taiwan’s stable interest approach should support the AUD. Finally, positive economic forecasts for Australia suggest robust growth, further strengthening the AUD against the TWD.
The near-term trading range is expected to oscillate around current levels, reflecting the recent volatility. Analysts note that the AUD is currently above its three-month average, indicating positive momentum.
Upside risks could stem from stronger-than-expected domestic growth in Australia or commodity price increases benefiting the AUD. Conversely, downside risks might arise from heightened geopolitical tensions or adverse movements in global risk sentiment which could push investors to safer assets, weakening the AUD.