The pound plummeted during Wednesday’s trading session as some worse-than-expected inflation figures weighed heavily on market sentiment.
Both AUD and NZD were lifted in the first half of last week’s session by a speech from Chinese president Xi Jinping at the Boao Asian forum on Tuesday, in which he laid out proposals for widening market access to China.
This helped to alleviate some of the recent concerns of a trade war between the US and China and helped to bolster market risk appetite.
However both currencies were forced to relinquish much of these gains later in the week as China printed a shock trade deficit, leading markets to shun the two commodity-correlated currencies.
The coming week may see the Australian dollar push higher as economists forecast the latest Australian labour report will see domestic unemployment fall from 5.6% to 5.5% in March.
Meanwhile the New Zealand dollar may also strengthen if inflation is shown to have risen in the first quarter as expected, although the ‘Kiwi’ could face some setbacks if dairy prices fall again at the latest auction on Tuesday.
Joining the corporate trading desk in 2007, Phil now overseas 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 FSA approval and has completed the Certificate in International Treasury Management (CertiTM)