The US dollar fell to two-week lows against its major rivals yesterday after concerns over the US economy’s resilience sapped USD demand.
Despite the central bank’s expression of confidence in the domestic economic outlook, the Australian dollar remained lacking in appeal.
A greater-than-expected narrowing of the trade surplus for February left AUD exchange rates exposed to selling pressure, with worries over the global recovery lingering.
On the other hand, the mood towards the New Zealand dollar saw improvement thanks to a smaller decline in the ANZ Roy Morgan consumer confidence index for March.
However, the New Zealand dollar may struggle to hold onto this positivity if April’s ANZ business confidence index remains trapped in negative territory.
Risk-sensitive currencies could find a boost ahead of the weekend, with forecasts pointing towards an uptick in the Chinese inflation rate.
As the Australian dollar remains a market proxy for sentiment towards the Chinese economy, a return to a positive inflation rate could see AUD exchange rates trending higher.
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)