Exchange Rate Calculator

The exchange rate between the Australian Dollar (AUD) and the Singapore Dollar (SGD) has experienced notable fluctuations over the past several months. This report provides an analysis of the recent trends, underlying factors influencing these movements, and projections for the near future.

Recent Exchange Rate Trends

Over the six-month period leading up to March 2025, the AUD/SGD exchange rate exhibited a downward trajectory. The highest rate recorded was 0.8899 SGD per AUD on October 4, 2024, while the lowest was 0.8366 SGD per AUD on March 21, 2025. This represents a decline of approximately 5.21% over the period. (exchange-rates.org)

In the first quarter of 2025, the exchange rate continued to decline. On March 4, 2025, the rate reached a low of 0.8330 SGD per AUD, marking the lowest point in the past 52 weeks. (poundsterlinglive.com) By March 14, 2025, the rate had slightly recovered to 0.8431 SGD per AUD. (investing.com)

Factors Influencing the AUD/SGD Exchange Rate

Several key factors have contributed to the observed fluctuations in the AUD/SGD exchange rate:

Commodity Prices and the Australian Economy

Australia's economy is heavily reliant on commodity exports, including iron ore, coal, and gold. The value of the AUD is closely tied to the prices of these commodities. When global demand for these resources is high, the AUD tends to strengthen; conversely, a drop in commodity prices can weaken the AUD. (stocksdownunder.com)

Monetary Policies and Interest Rates

The Reserve Bank of Australia (RBA) and the Monetary Authority of Singapore (MAS) play pivotal roles in determining the exchange rate through their monetary policies. As of November 2023, the RBA's cash rate stood at 4.35%, the highest level since April 2012. In contrast, Singapore manages its currency through exchange rate targeting, keeping the SGD relatively stable. This unique approach means that any AUD to SGD forecast must consider not only interest rates but also the MAS’s policy responses to global events. (stocksdownunder.com)

Global Risk Sentiment

The AUD is often seen as a "risk-on" currency, meaning it tends to perform well when investors are optimistic about global growth. Conversely, it tends to weaken when investors become more risk-averse and seek safer investments. With ongoing geopolitical tensions, supply chain disruptions, and a slowing global economy, risk sentiment has soured, leading to a decline in demand for risk-sensitive currencies like the AUD. (mydayfinance.com)

Singapore Dollar's Stability

While the SGD is not traditionally considered a safe-haven currency, its relative stability and the strength of Singapore’s financial system have made it an attractive option in volatile times. As investors seek stability, they are more likely to favor the SGD over the more volatile AUD, pushing the AUD/SGD exchange rate lower. (mydayfinance.com)

Technical Analysis

As of March 24, 2025, technical indicators for the AUD/SGD pair suggested a strong buy signal. The Relative Strength Index (RSI) stood at 56.664, indicating buying momentum. However, the Stochastic RSI was at 100, suggesting overbought conditions. Moving averages presented a mixed picture, with short-term averages indicating a buy and longer-term averages indicating a sell. (investing.com)

Forecasts and Projections

Forecasts for the AUD/SGD exchange rate suggest a gradual appreciation of the AUD against the SGD over the next few years. By the end of 2025, the exchange rate is projected to average around 0.8521 SGD per AUD, with values expected to range between 0.8504 and 0.8538. Looking ahead to 2026, the average rate is forecasted at 0.8588 SGD per AUD, fluctuating between 0.8563 and 0.8614. (midforex.com)

However, other projections indicate a potential decline. For instance, one forecast suggests that the AUD/SGD rate could decrease by 7.93% over the next year, resulting in a rate of 0.772209 SGD per AUD. (coincodex.com)

Conclusion

The AUD/SGD exchange rate has experienced a downward trend over the past several months, influenced by factors such as commodity price fluctuations, differing monetary policies, and global risk sentiment. While some forecasts predict a gradual appreciation of the AUD against the SGD, others suggest a potential decline. Investors should closely monitor these factors and consider both technical indicators and fundamental analyses when making decisions related to the AUD/SGD currency pair.