The Australian dollar started the week on a strong note, with an upbeat market mood supporting the risk-sensitive ‘Aussie’. Recent strong data from China also gave AUD a boost, as the ‘Aussie’ often trades as a proxy for the Chinese economy.
This was of course linked in large part to the emergence of a new Covid variant ‘of concern’ which prompted major market selloff at the end of last week, but was also driven earlier in the session by broader coronavirus concerns.
This overshadowed the release of Australia’s latest retail sales figures, in spite of sales growth soaring above expectations in October.
It seems safe to assume the Australia dollar will face a difficult time this week as Omicron fears look to suppress market risk appetite.
Moreover, the publication of Australia’s latest GDP figures could also act as a headwind for the ‘Aussie’ amidst forecasts for a sharp contraction of domestic growth in the third quarter.
One bright spot for the Australia dollar may be the subsequent release of Australia’s latest trade figures, which are expected to report the country enjoyed another bumper trade surplus in October.
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)