AUD/TWD Outlook:
Slightly positive, but likely to move sideways as the rate is above its recent average and near its recent highs, lacking a clear driver for further movement.
Key drivers:
• Rate gap: The Reserve Bank of Australia’s recent rate hike is creating a stronger appeal for the Australian dollar relative to the New Taiwan Dollar.
• Risk/commodities: The trend in commodities is boosting the AUD, supported by higher demand amid improving global market conditions.
• China's economic impact: China's optimistic economic recovery is benefiting demand for Australian exports, which positively influences the AUD.
Range:
The AUD/TWD is expected to drift within its recent range as it holds above the average.
What could change it:
• Upside risk: A stronger-than-expected Australian economic outlook could attract more investments into the AUD.
• Downside risk: A sudden downturn in global risk appetite may pressure the AUD against the TWD.