The US dollar fell to two-week lows against its major rivals yesterday after concerns over the US economy’s resilience sapped USD demand.
While the New Zealand economy has previously shown resilience in the face of the global Covid-19 crisis, this weaker data left investors with little reason to support NZD exchange rates.
Investors were also disappointed to discover that the fourth quarter NZ GDP has turned negative, leaving the New Zealand Dollar biased to the downside.
An unexpectedly strong improvement in the Australian unemployment rate offered support to the similarly risk-sensitive Australian Dollar.
If March’s manufacturing and services PMIs remain firmly in growth territory, this may encourage the Australian Dollar to make fresh gains across the board.
The New Zealand Dollar looks vulnerable, meanwhile, as markets brace for the release of February’s balance of trade.
Unless trade conditions show evidence of strong improvement last month, NZD exchange rates are likely to remain on a weaker footing in the days ahead.
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)