AUD/SGD Outlook:
Slightly positive, but likely to move sideways, as the rate is above its recent average but lacks a clear driver.
Key drivers:
• Rate gap: The Reserve Bank of Australia's recent interest rate hike supports the AUD, while Singapore's more accommodative policy stance limits SGD strength.
• Risk/commodities: Recent stability in global oil prices may support demand for Australian commodities, which typically bolsters the AUD.
• One macro factor: China's economic policies are fostering demand for Australian exports, providing further support to the AUD.
Range:
Expect the AUD/SGD to trade within its recent range, holding steady without significant movement towards the extremes.
What could change it:
• Upside risk: Stronger-than-expected demand for Australian commodities could drive the AUD higher.
• Downside risk: A notable decline in consumer confidence in Australia could pressure the AUD lower.