The current market bias for the AUD to TWD exchange rate is bullish. Key drivers influencing this trend include the interest rate expectations from the Reserve Bank of Australia (RBA), which is anticipated to raise rates due to rising inflation. Additionally, the recent recovery of commodity prices has bolstered the Australian dollar, a commodity currency. Positive economic forecasts for Australia further support this outlook.
In the near term, the AUD to TWD is expected to trade within a slightly elevated range as it currently sits above its three-month average, indicating a healthy demand for the Aussie. The exchange rate has fluctuated between stable limits recently, showcasing a generally contained volatility.
An upside risk could stem from stronger-than-expected economic data that may prompt the RBA to adopt a more aggressive monetary policy. Conversely, a downside risk involves geopolitical tensions, which could dampen market sentiment and weaken the AUD against the TWD.