The AUD to ZAR exchange rate is currently range-bound.
Key drivers include the interest rate differential, with the Reserve Bank of Australia expected to raise rates while the South African Reserve Bank has already cut rates. Economic growth forecasts for South Africa show slight improvement, but issues like electricity supply continue to cause concerns. Additionally, Australia's commodities, tied to the AUD, are facing price volatility, as oil prices remain lower than average, which can impact demand for exports.
The near-term trading range suggests the AUD will fluctuate within a stable band. Upside risks could emerge from stronger commodity prices or improved economic data from China, fostering higher demand for Australian exports. Conversely, downside risks include continued weakness in the global oil market or disappointing economic indicators in South Africa that could undermine confidence in the ZAR.