The euro slumped on Thursday following the European Central Bank’s (ECB) latest interest rate decision.
The RBA’s cautious optimism in spite of the Omicron variant being a ‘source of uncertainty’ prompted suggestions the bank might abruptly halt its bond purchases at its February meeting, a move which could open the door for the RBA to begin hiking interest rates in 2023.
The ‘Aussie’s gains through the first half of the week were further reinforced by upbeat market sentiment.
However, the Australian dollar’s rally subsequently petered out in the latter half of the week as the mod began to sour amidst rising geopolitical tensions as well as concerns that Omicron could still disrupt the global economic recovery, in spite of early data showing it may result in milder symptoms.
So far this week, AUD exchange rates have come under some modest pressure as market risk appetite continues to falter amidst Federal Reserve interest rate speculation and Covid concerns.
However, there’s a strong chance the ‘Aussie’ could rally in the latter half of the week, if Australia’s latest jobs figures report domestic unemployment began to fall again in November.
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)