The US dollar fell to two-week lows against its major rivals yesterday after concerns over the US economy’s resilience sapped USD demand.
Thursday’s data revealed domestic unemployment surged much higher than expected in October, climbing to 5.2% and sapping expectations the Reserve Bank of Australia (RBA) is likely to hike interest rates anytime in the near-future.
Exacerbating the ‘Aussie’s losses was the prevalence of a risk-off mood through much of the week, driven in large part by the sharp appreciation of the US dollar in mid-week trade, although the Australian Dollar was able to rebound from its worst levels at the end of the week as market sentiment was buoyed after Chinese construction giant, Evergrande managed to meet another payment deadline.
Looking ahead, the publication of Australia’s latest wage price index will likely be the immediate focus for AUD investors, with a bump in wage growth in the third quarter potentially supporting the ‘Aussie’.
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)