Forecasts for MYR to AUD
According to recent forecast analysis by FX analysts, the Malaysian Ringgit (MYR) is expected to maintain its strength against the Australian Dollar (AUD) in the coming years. The MYR to AUD exchange rate is currently trading at 90-day lows near 0.3240, which is 2.3% below its 3-month average of 0.3316. However, despite the recent dip, the MYR is predicted to end 2023 with an exchange rate range of 4.20 to 4.30 per US dollar.
The fundamentals of the Malaysian economy, particularly the recovery of the tourism sector and potential narrowing of the services account deficit, are expected to support the strength of the MYR. Additionally, the relatively weaker currency could attract expatriates, foreign retirees, and other high-valued foreigners to invest in Malaysian real estate, taking advantage of Malaysia's lower cost of living compared to neighboring countries like Singapore.
In terms of the Australian economy, the AUD is influenced by factors such as commodity prices, trade policies, and political developments. As Australia is a major commodities exporter, any changes in commodity prices, especially the demand for iron ore, can have a significant impact on the AUD's value. The AUD is also influenced by global market sentiment, with increased confidence in global growth prospects leading to an appreciation of the currency.
It is worth noting that the AUD's value against the MYR may also be affected by changes in the price of oil. Malaysia, along with Thailand, is one of the largest oil producers in Asia. The recent Brent Crude OIL/USD price data shows that the price of oil is currently 8.0% below its 3-month average. Any significant trends in oil prices could have an impact on the MYR and, consequently, the MYR to AUD exchange rate.
Overall, based on market analysis and recent data, it is expected that the MYR will remain relatively strong against the AUD in the coming years, with the potential for increased interest from foreign investors due to the lower cost of living and attractive real estate opportunities in Malaysia. However, fluctuations in commodity prices and oil prices could introduce some volatility to the exchange rate.
