The pound sought to rally on Tuesday as some better-than-expected borrowing figures helped to bolster the appeal of the beleaguered currency.
Tuesday saw the Australian dollar climb higher on the back of business confidence survey results. The NAB business conditions index hit a nine-year high of 15. Meanwhile, the New Zealand dollar slumped on the back of news that a 6.8 magnitude earthquake had struck around 200km off the coast of New Zealand’s South Island. Although there were no initial reports of damage or casualties, the quake brought back memories of the more severe Kaikoura earthquake in November 2016, which caused significant damage.
AUD continued its modest advance on Wednesday following rising consumer confidence and credit card purchases figures. Meanwhile, the New Zealand dollar rose as general risk-appetite improved.
Risk appetite continued to boost the Australian dollar and the New Zealand dollar on Thursday. Survey data showed Australian consumers were expecting a strong uptick in the pace of inflation over the coming twelve months, which points to higher spending. Although New Zealand consumer confidence fell sharply, market demand for higher-yielding currencies helped keep NZD buoyant.
Poor US data on Friday slashed the odds of an interest rate hike, pushing the Australian dollar much higher as markets turned their attention to more risky currencies. This didn’t make the New Zealand dollar any more appealing, however.
There are a handful of impactful releases on the data calendar from Australia this week. Minutes from the Reserve Bank of Australia’s (RBA) latest monetary policy meeting could cause significant volatility if they reveal a cautious outlook on interest rates. Thursday’s employment and joblessness figures will also cause serious movement.
Today’s New Zealand consumer price index figures could significantly shift NZD, as could the results of tomorrow’s global dairy auction.
Joining the corporate trading desk in 2007, Phil now overseas 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 FSA approval and has completed the Certificate in International Treasury Management (CertiTM)