AUD/PHP Outlook:
Slightly positive, but likely to move sideways, as the rate is above its recent average but lacking a clear driver.
Key drivers:
• Rate gap: The Reserve Bank of Australia's recent rate hike aims to combat rising inflation, which may support the AUD against the PHP.
• Risk/commodities: The Australian dollar remains strong, influenced by steady commodity prices, particularly due to demand from China.
• One macro factor: Market caution ahead of key US economic data may limit the AUD's further gains while weighing on market confidence.
Range:
Expect the AUD/PHP to drift within its recent 3-month range without testing extremes.
What could change it:
• Upside risk: A surprise increase in Australian export demand could strengthen the AUD further.
• Downside risk: Speculations regarding potential rate cuts from the Bangko Sentral ng Pilipinas might exert downward pressure on the PHP.