The US dollar fell to two-week lows against its major rivals yesterday after concerns over the US economy’s resilience sapped USD demand.
The beginning of the week had seen the Australian dollar supported against many of its major rivals as a risk-on mood helped to bolster the currency.
However, Wednesday saw the release of the latest Westpac consumer confidence index from Australia for May which caused the ‘Aussie’ to stumble. The index fell below forecast to 113.1 in May from an eleven-year high of 118.8 in April.
At the same time, the release of the Federal Reserve’s latest policy meeting minutes, which hinted at tightening monetary policy, bolstered the US dollar and in turn caused the Australian dollar to weaken.
However, towards the end of the week, the Australian dollar received support as Australia’s unemployment rate unexpectedly fell to 5.5% from 5.6%.
Closing the week, Australian flash IHS Markit PMIs for May showed a small decline indicating business activity growth began to slow slightly.
The start of this week has seen the Australia dollar begin to trend higher as a more upbeat market mood helps to bolster the currency.
A quieter economic data week for the Australian dollar will see the global market mood drive AUD movement.
Meanwhile, the New Zealand dollar has started this week supported by retail sales from New Zealand for Q1, which have revealed that retail sales expanded 2.5% in the first quarter of 2021.
A slightly busier economic data calendar for New Zealand sees the latest interest rate decision from the Reserve Bank of New Zealand (RBNZ) on Wednesday. All eyes will be on the RBNZ press conference which could give an indication into how the New Zealand economy is performing.
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)