The US dollar fell to two-week lows against its major rivals yesterday after concerns over the US economy’s resilience sapped USD demand.
Also exerting some pressure on the ‘Aussie’ was the latest forward guidance from the Reserve Bank of Australia (RBA), which signalled the bank’s ultra-accommodative monetary policy will likely remain in place until at least 2024.
However, it wasn’t all doom and gloom for the Australian dollar, with the currency able to find some support from some upbeat GDP figures as well as a drop in the US dollar.
In the absence of any notable domestic data releases, the New Zealand dollar mostly moved in step with market risk-appetite last week, leading to the ‘Kiwi’ trading in a wide range as market sentiment fluctuated.
Looking to the week ahead, it’s likely that market risk appetite will continue to act as a key catalyst of movement in the Australian and New Zealand Dollars, with the pairing potentially being infused with fresh volatility amidst rising concern over new coronavirus variants.
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)