The US dollar was placed on the defensive on Friday due to doubts whether the Federal Reserve will be willing to hike interest rates amidst worries over a new Covid variant of concern.
This was primarily driven by the Evergrande crisis, with fears that the collapse of the Chinese construction giant could have a major knock-on effect on the global economy, with Australia seen as particularly exposed due to its close trade relationship with China.
Adding to the pressure on AUD exchange rates through the first half of the week, were some dovish minutes from the Reserve Bank of Australian’s (RBA) latest policy meeting.
The ‘Aussie’ briefly rebounded in the latter half of the week on the back of some stronger-than-expected PMI figures, but was unable to sustain this recovery as market sentiment continued to sour.
The Australian Dollar is off to a robust start so far this week, with the currency being underpinned by an improving market mood and above-forecast retail sales figures. But it remains to be seen how long this can be sustained, amidst ongoing concerns over the global economic recovery.
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)