AUD/ILS Outlook:
Slightly positive, but likely to move sideways, as the rate is above its recent average but lacks a strong directional driver.
Key drivers:
• Rate gap: The Reserve Bank of Australia's recent rate hike contrasts with the Bank of Israel's decision to cut its rate, making the Aussie more attractive to investors.
• Risk/commodities: The Australian dollar benefits from healthy demand for commodities, which bolsters its value, although global market caution may hinder momentum.
• Macro factor: The unexpected rise in Australia's inflation has led to speculation of additional monetary tightening by the RBA, supporting the AUD.
Range:
Expect AUD/ILS to hold within its recent trading range, as current economic signals remain mixed.
What could change it:
• Upside risk: A stronger-than-expected Australian job report could trigger additional AUD buying.
• Downside risk: Renewed concerns over global market stability could push the AUD lower as investors seek safer options.
