The pound collapsed on Friday as markets were rattled by the contents of UK Chancellor Kwasi Kwarteng’s mini-budget.
Speaking at the start of the week, RBA Governor Philip Lower confirmed that more interest rate hikes are on the way. Stating that the bank ‘expects that further increases will be required over the months ahead.’
This was then reinforced by the publication of the minutes from the RBA’s July policy meeting, as they revealed policymakers are considering another 50bps rate hike in August.
Fluctuating market sentiment then tempered demand for the Australian dollar in the second half of the week, although a pullback in the US dollar ultimately allowed the closed the ‘Aussie’ to close the week on a high.
The spotlight for AUD investors this week will undoubtedly be on the publication of Australia’s consumer price index, where another jump in inflation is likely to bolster the ‘Aussie’ if it strengthens RBA rate hike expectations.
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)