AUD/VND Outlook:
Slightly positive, but likely to move sideways, as the AUD remains above its recent average though lacks a clear single driver.
Key drivers:
• Rate gap: The Reserve Bank of Australia’s recent rate hike contrasts with a more stable interest rate outlook for the Vietnamese central bank, supporting the AUD.
• Risk/commodities: Recent strength in Australian commodities continues to underpin the AUD, as increased demand from China boosts confidence in Australian exports.
• One macro factor: The recent rise in Australia's Consumer Price Index is fueling expectations for further monetary tightening, which can sustain the AUD's strength.
Range:
Expect the AUD/VND to hold within the recent range, reflecting lack of momentum for major movement.
What could change it:
• Upside risk: A significant improvement in global market risk appetite could boost the AUD.
• Downside risk: A notable decline in consumer confidence in Australia could weigh on the AUD.
