The Australian dollar trended lower through the majority of last week, with the risk-sensitive currency struggling to attract support as a gloomy market mood prevailed through most of the session.
Disappointing Australian data may have contributed to the downside. Early in the week, Australian business confidence and consumer confidence both fell by more than expected.
Some troubling Chinese data weighed on the ‘Aussie’ as this week’s trade got underway. Industrial production declined by 2.9%, while retail sales slumped by a whopping 11.1%. As AUD often trades as a proxy for the Chinese economy, these figures hurt the ‘Aussie’.
The Reserve Bank of Australia’s (RBA) meeting minutes could provide AUD with a boost in the early hours of Tuesday morning. Investors will be keen to see just how hawkish the RBA sounds about its tightening cycle.
Later in the week, Australia’s unemployment rate is forecast to have fallen by 0.1 percentage points in April. This could also bolster the ‘Aussie’ dollar.
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)