The market bias for the AUD to TWD exchange rate is currently range-bound.
Key drivers include the interest rate differential, with the Australian Reserve Bank expected to raise rates, potentially boosting the AUD. At the same time, Taiwan's central bank is focused on exchange rate stability, which may limit significant fluctuations in the TWD. Additionally, rising commodity prices are helping to support the AUD, as the currency is closely linked to Australia's export performance, particularly in commodities.
In the near term, the AUD to TWD is expected to trade within a stable range, maintaining levels above its recent average but not significantly exceeding it.
An upside risk could arise from stronger-than-expected global demand for Australian commodities, while a downside risk may be posed by geopolitical tensions or economic concerns that impact investor confidence in either currency.