The euro tumbled on Thursday following the publication of some disappointing Eurozone PMIs.
Both AUD and NZD derived considerable strength last week ahead of the Federal Reserve’s rate decision as investors sought alternative markets to invest in, while further weakness in USD in the wake of the decision further bolstered the pairing.
On the domestic front the Australian Dollar’s rise was aided last week by both an uptick in consumer confidence and more notably a surge in employment, with the ‘Aussie’ receiving a major boost from an impressive labour report on Thursday.
Meanwhile it was another quiet week for New Zealand data, but this didn’t stop NZD from tearing higher after it was announced at the start of the week that Adrian Orr would be taking over as Governor of the Reserve Bank of New Zealand (RBNZ) next year.
Looking ahead the New Zealand dollar may continue to trend higher this week if the domestic trade balance improves as expected, although any gains could be easily wiped out if dairy prices slip at the latest dairy auction.
Meanwhile a quiet week of data ahead of the Christmas period may dent the Australian dollar’s chances of advancing this week, with the currency’s fate likely to be tied to iron ore, with the commodity’s recent fluctuation making it difficult to judge whether it will go up or down.
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