The pound entered freefall yesterday following a sharp rise in Brexit uncertainty after Theresa May announced that the vote on her Brexit deal would be delayed.
Both the Reserve Bank of Australia (RBA) and the Reserve Bank of New Zealand (RBNZ) announced their latest monetary policy decisions.
The RBA held interest rates at 1.50% and left its economic forecasts largely unchanged for the coming years, as well as indicating that there are unlikely to be any adjustments to monetary policy for some time.
The RBNZ, meanwhile, upped its inflation forecast, causing markets to bring forward their expectations for when the next interest rate hike could be delivered.
However, a -3.5% slump in dairy prices at the latest global auction weighed on the near-term outlook for the New Zealand economy.
There is plenty of Australian sentiment data set for release this week, which will give a better picture of how households and the private sector feel about the economy.
Tonight’s ANZ Roy Morgan weekly consumer confidence index will be followed tomorrow by NAB business conditions surveys and the Westpac consumer confidence results.
The Q3 wage price index will show whether pay growth accelerated; something that would be well-received as it would improve the inflation outlook.
Things pick up on Thursday with the consumer inflation expectation, employment change and unemployment rate data. Another sizeable increase in employment is expected, so the Australian dollar could find some support here.
Meanwhile there is barely any New Zealand data of note released this week, with the most impactful release being Thursday’s Business NZ performance of manufacturing PMI.
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)