The pound plummeted on Tuesday as the latest UK PMIs printed well below expectations.
This saw the ‘Aussie’ stumble in early trade as market sentiment was dented by the uncertainty surrounding the Omicron Covid variant.
AUD exchange rates then rallied in mid-week trade, buoyed by the optimism surrounding the reopening of Australia’s borders as well as data showing a surprisingly strong drop in domestic unemployment last month.
But the Australian dollar was unable to sustain these gains as another souring of market risk appetite saw investors shy away from the currency at the end of the session.
So far this week, the 'Aussie’ has extended its losses as growing concern over Omicron has prompted a modest selloff in equity markets. Expect these concerns to weigh on AUD exchange rates throughout the week
Elsewhere, the publication of the minutes from the Reserve Bank of Australia's (RBA) latest policy meeting will be in the spotlight for AUD investors, and could help to limit the ‘Aussie’s losses if they hint at accelerating the RBA’s tapering process.
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)