The US dollar remained well supported on Friday, with the currency continuing to catch bids in light of the Federal Reserve’s recent hawkish shift.
While the RBA expressed some optimism over the economic outlook, AUD exchange rates failed to receive any particular boost, with the odds of an interest rate hike still looking limited.
However, Australian dollar gains were limited after China ‘indefinitely’ suspended the China-Australia Strategic Economic Dialogue as tensions continue to simmer.
Meanwhile, an unexpectedly strong uptick in the latest ANZ business confidence index offered a boost to the New Zealand dollar.
As the US dollar fell sharply out of favour ahead of the weekend, this also helped to shore up the risk-sensitive currencies as market risk appetite improved.
The mood towards the New Zealand dollar could sour, however, with forecasts pointing towards a negative April food inflation reading.
Evidence that inflationary pressure within the New Zealand economy failed to pick up further could weigh heavily on NZD exchange rates.
At the same time, another solid month of growth in Australian new home sales may help to limit any potential Australian dollar losses.
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)