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.
The increasing odds of a potential global recession left both the risk-sensitive antipodean currencies out of favour.
As the Reserve Bank of New Zealand (RBNZ) followed its peers with an interest rate cut the appeal of the New Zealand dollar naturally diminished.
A fresh decline in the Westpac consumer confidence index weighed on the Australian dollar, meanwhile, as the threat of an Australian slowdown lingered.
Thursday’s set of Australian labour market data is unlikely to offer any particular boost to AUD exchange rates, even though no change in the unemployment rate is expected.
Unless the Australian economy can demonstrate strong signs of resilience in the face of global weakness demand for the Australian dollar looks set to remain muted.
With the first quarter New Zealand gross domestic product expected to soften on both the year and the quarter support for the New Zealand dollar could diminish further this week.
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)