The Australian Dollar to Malaysian Ringgit, Australian Dollar to Chinese Yuan (AUD/CNY) and Australian Dollar to Indian Rupee (AUD/INR) exchange rates all trended lower while the Australian Dollar to Swiss Franc (AUD/CHF) exchange rate advanced in Thursday’s European session.
The Australian Dollar has recorded gains over the last few days as the Reserve Bank of Australia (RBA) advocated keeping rates on hold at 2.25%.
However, the Malaysian Ringgit hit a one-week low against the US Dollar this week after Bank Negara Malaysia kept interest rates at 3.25%.
The central bank stated: ‘At the current level of the overnight policy rate, the stance of monetary policy remains accommodative and supportive of economic activity. The Monetary Policy Committee will continue to carefully assess external and domestic developments and their implications on the risks to inflation and on the Malaysian economy.’
The Chinese Yuan lost investor sentiment on speculation that the People’s Bank of China (PBOC) will continue to ease monetary policy to support economic growth. This week the Chinese Yuan exchange rate dropped to its lowest level versus the US Dollar since October 2012 after the PBOC cut interest rates over the weekend.
The Chinese government also downgraded its growth forecast for 2015 to 7.0% from 7.5%.
The Swiss Franc is gearing up for an influential day on Friday with the release of the Swiss Consumer Price Index (CPI). However, speculation that the Swiss National Bank (SNB) may consider introducing a new Euro to Swiss Franc floor (EUR/CHF) could keep the Swiss Franc under some serious pressure.
Any news on the prospect of a cap between the Swiss Franc to Euro (CHF/EUR) exchange rate could cause major movement over the next few months.
Meanwhile, the Indian Rupee fell to a weekly low against the US Dollar on Wednesday after the Reserve Bank of India (RBI) introduced another surprise rate cut. Furthermore, Barclays analysts have suggested that the RBI may continue to keep tabs on the Rupee to US Dollar (INR/USD) exchange rate and potentially intervene in the forex markets.
The RBI has previously stated it ‘does intervene on occasion, in both directions, to reduce avoidable volatility in the exchange rate.’
Australian Dollar (AUD) Exchange Rate Forecast: AUD/MYR, AUD/INR, AUD/CHF, AUD/CNY
The Australian Dollar could fluctuate on Friday when the Australian Performance of Construction Index is released; the January reading resided at 45.9.
The Australian Dollar to Malaysian Ringgit (AUD/MYR) exchange rate resides at 2.8484. The Australian Dollar to Swiss Franc (AUD/CHF) exchange rate is trading at 0.7559. The Australian Dollar to Chinese Yuan (AUD/CNY) exchange rate hovers at 4.8940. The Australian Dollar to Indian Rupee (AUD/INR) exchange rate is trending in the region of 48.5760.