You've landed on our UK website.
Click here to visit our USA website.

If you are having difficulty locating the information you require, we're here to help. Just get in touch and we will do our best to assist you.

Weekly roundup: AUD and NZD turbulent on weakening global appetite for risk assets

currency-newsWeekly roundup: AUD and NZD turbulent on weakening global appetite for risk assets
AUD and NZD were on volatile form last week as market demand for risky assets cooled. Signals from the Australian and New Zealand economies were mixed, giving markets little reason to either flock to, or flee from, AUD and NZD.

The Australian dollar and New Zealand dollar started the week on a positive note, as risk appetite was recovering following a quiet weekend in terms of rhetoric from North Korea or the United States.

Things weren’t so rosy on Tuesday, with the Australian dollar softened by falling consumer and business confidence. Meanwhile, the New Zealand dollar fared slightly better thanks to consistent employment figures and 0.6% growth in food prices, which will help push inflation higher.

Wednesday left the New Zealand dollar reacting to market sentiment, thanks to a lack of domestic data. Investors are becoming increasingly concerned ahead of the upcoming General Election, which could see Labour overthrow the incumbent National Party after nearly ten years in power.

Meanwhile the Australian dollar failed to particularly benefit from the latest Westpac consumer confidence index for September, which showed a rise from 95.5 to 97.9.

Surging demand for the US dollar muted AUD and NZD on a day where the pair should have made strong gains. New Zealand’s ANZ consumer confidence index climbed 3.8% to 129.9 in September, while the Australian jobs sector added an impressive 54,200 new jobs in August, against forecasts of 20,000.

News that North Korea had fired another missile over Japan on Friday kept the Australian dollar weak, with no domestic data to provide support for AUD. The New Zealand dollar fared better, thanks to a sharp climb in the Business NZ performance of manufacturing index for August, which climbed from 55.5 to 57.9 when it was released late on Thursday night.

The biggest event on the Australian economic calendar this week is a speech from Reserve Bank of Australia (RBA) Governor Philip Lowe on Wednesday – a day after the minutes from the latest RBA monetary policy meeting will have been released.

Meanwhile, the New Zealand dollar is likely to see strong volatility in response to Wednesday’s second-quarter GDP figures.
Philip McHugh

Philip McHugh

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)

Check our exchange rate

Thanks, we'll be in touch.

Check your inbox - one of our currency experts will be in touch to complete your quote.

If you want see our online exchange rates straight away, simply register online & log in.