The euro slumped on Thursday following the European Central Bank’s (ECB) latest interest rate decision.
Stronger-than-expected Chinese PMI data helped boost the ‘Aussie’, which often trades as a proxy for the Chinese economy due to the two countries’ close trading ties.
However, as the week went on the market mood soured, weighing on the risk-sensitive currency. In addition, Australian and Chinese data releases missed forecasts, contributing to AUD losses.
Looking ahead, the Reserve Bank of Australia (RBA) interest rate decision is the key focus for AUD investors this week. With a half-point hike priced in, traders will perhaps focus on the RBA’s messaging over the Australian economy and future rate rises.
In addition, some high-impact Chinese and Australian data could also affect the ‘Aussie’. Expectations of positive Australian GDP growth and strong trade figures from both countries could boost AUD.
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)