AUD/VND Outlook:
The Australian dollar (AUD) is currently trading above its recent average, showing a slightly positive outlook as it is near its recent highs. The market's recovery in risk appetite has given the AUD a boost, highlighting its potential for further gains.
Key drivers:
• Rate gap: The Reserve Bank of Australia’s cautious approach contrasts with the U.S. Federal Reserve's gradual easing, supporting the AUD's strength.
• Risk/commodities: Rising demand for Australian exports like iron ore due to China’s economic recovery positively impacts the AUD.
• One macro factor: Recent sticky inflation in Australia increases the likelihood of continued interest rate tightening, further supporting the AUD.
Range:
Expect the AUD/VND to hold within its recent range, possibly testing new highs.
What could change it:
• Upside risk: A significant shift toward increased global risk appetite could further elevate the AUD.
• Downside risk: Renewed geopolitical tensions could dampen the AUD's performance and weaken its position.
