Forecasts for MYR to AUD
The exchange rate forecast for the Malaysian Ringgit (MYR) against the Australian Dollar (AUD) reflects ongoing volatility influenced by recent geopolitical developments and economic factors. Analysts point out that the recent imposition of a 24% tariff by the U.S. on Malaysian imports, announced by President Trump, introduces significant pressure on the MYR. While Malaysia's government has opted for engagement rather than retaliation, the broader implications of tariffs have dampened market sentiment towards emerging Asian currencies, contributing to a bearish outlook.
Meanwhile, the Australian dollar has shown some resilience, bolstered by hopes of a de-escalation in the U.S.-China trade tensions. Recent updates indicate that President Trump has also imposed a 10% tariff on Australian goods, but optimism surrounding the potential resolution of trade disputes has allowed the AUD to appreciate marginally. As a commodity currency, the AUD’s performance is intricately linked to global demand for key exports such as iron ore and coal. Consequently, stronger demand from China, Australia's largest trading partner, would typically favor the AUD, while any significant slowdown in the Chinese economy could exert downward pressure.
Current MYR to AUD trading at 0.3567 is just 0.7% below its three-month average of 0.3591. This relatively stable performance has been maintained within a six-month range of 0.3525 to 0.3752. However, the weakening of regional currencies, alongside the growing uncertainty over global trade dynamics, could continue to influence the MYR negatively.
Additionally, the fluctuation of oil prices plays a critical role in the MYR’s value, given Malaysia's status as a significant oil exporter. The current oil price at Brent Crude OIL/USD 66.87 is 6.8% below its three-month average of 71.74, reflecting a volatile trading range that has seen prices swing between 61.58 and 78.50. Analysts note that sustained low oil prices can weaken the MYR further, particularly if they persist and lead to concerns regarding Malaysia’s export revenues.
As market conditions evolve with ongoing geopolitical events and economic indicators, both the MYR and AUD could see further fluctuations, contingent on developments in international trade and commodity markets.
