The market recovery seen in the wake of the G20 meeting fast faded as the arrest of a prominent Chinese businesswoman spooked markets, leaving the Australian and New Zealand dollars under pressure.
Markets were encouraged by the US decision to postpone the imposition of additional tariffs, giving the two sides further time to negotiate.
This helped to shore up the Australian dollar even in the wake of a sharp dip in November’s manufacturing PMI, which disappointingly dropped from 58.3 to 51.3.
However, AUD exchange rates are likely to come under renewed pressure in the days ahead if domestic data continues to fall short of forecasts.
Underwhelming gross domestic product or trade balance readings could weigh heavily on the Australian dollar, even if market risk appetite remains elevated.
A deterioration in the third quarter New Zealand terms of trade also suggests that underlying weakness persists within the domestic economy.
Unless the ANZ commodity price index shows a rebound on the month the New Zealand dollar could struggle to hold onto any of its recent gains this week.
Friday’s US labour market data could also see AUD and NZD exchange rates trending lower if it prints positively.
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)