The pound plummeted on Tuesday as the latest UK PMIs printed well below expectations.
As both the NAB business confidence and Westpac consumer confidence indexes bettered expectations, this offered AUD exchange rates a boost.
However, the New Zealand dollar found itself on a generally weaker footing thanks to March’s ANZ business confidence index unexpectedly dropping from 7 to 0.
A softer food inflation reading also put pressure on NZD exchange rates, especially as market risk appetite generally weakened in the face of the resilient US dollar.
Nevertheless, the New Zealand dollar could find a rallying point on Wednesday if the fourth quarter GDP shows positive growth on the quarter.
Demand for the Australian dollar may also strengthen if February’s unemployment rate falls from 6.4% to 6.3% as forecast.
Evidence of a strengthening labour market could encourage greater optimism in the resilience of the Australian economy, leaving AUD exchange rates on a stronger footing.
Joining the corporate trading desk in 2007, Phil now over sees all of Currencies Direct’s corporate dealing activity. Having gained experience working with hundreds of businesses to optimise international payments processes and execute comprehensive risk management strategies, Phil currently works with a portfolio of corporate clients whilst managing Currencies Direct’s overall market exposure
Phil has FCA approval and has completed the Certificate in International Treasury Management (CertiTM)