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.
With the central bank looking set to leave monetary policy unchanged in the coming months, investors saw little incentive to favour the Australian dollar.
A surprise narrowing of March’s trade surplus also put pressure on AUD exchange rates, suggesting that trade conditions had worsened at the end of the first quarter.
Meanwhile, although the ANZ Roy Morgan consumer confidence index improved on Friday, this was not enough to keep the New Zealand dollar from shedding ground.
Another negative month for the ANZ business confidence index could see NZD exchange rates shedding further support this week.
The release of the RBA statement on monetary policy is likely to leave the Australian dollar lacking in any particular demand.
However, if the latest Chinese trade data proves encouraging, this could help AUD exchange rates to gain a foothold as market sentiment improves once again.
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)