AUD/MYR Outlook:
The outlook for AUD/MYR is slightly positive, but likely to move sideways, as the rate is above its recent average yet lacks a clear driver.
Key drivers:
• Rate gap: The Reserve Bank of Australia's recent rate hike supports the AUD against the MYR, which benefits from a weaker US dollar due to Federal Reserve policies.
• Risk/commodities: Oil prices are well above average, strengthening the AUD as it is a commodity currency primarily influenced by global oil trends.
• One macro factor: Malaysia's GDP growth of 5.2% highlights strong economic resilience, positively impacting the MYR.
Range:
AUD/MYR is expected to drift within its recent range, not likely testing extremes.
What could change it:
• Upside risk: A stronger-than-expected commodity demand could lead to increased AUD strength.
• Downside risk: A drop in consumer confidence in Australia could weaken the AUD further.