The pound traded with modest gains on Tuesday, following the publication of the UK’s latest employment figures.
However, AUD and NZD fought back before the weekend and extended gains as a new week of trading got underway.
AUD/GBP rebounded from last week’s low of £0.5822 to £0.5903 ahead of the Reserve Bank of Australia’s (RBA) interest rate decision, benefiting from broad-based weakness in Sterling following the release of disappointing UK manufacturing data.
Meanwhile, AUD/EUR edged slightly higher and AUD/USD advanced on the day’s opening levels.
The New Zealand dollar surged 0.7% against the euro, over 1% against the pound and 0.4% against the Canadian dollar.
Although the New Zealand dollar stumbled last week after New Zealand’s election produced an inconclusive result, the antipodean currency has now moved away from its worst levels.
Tomorrow’s RBA rate decision could lift AUD exchange rates if policymakers appear positive on the subject of Australia’s economic outlook or if tighter monetary policy is mentioned.
Tuesday also sees the week’s most NZD-influential news – the latest dairy auction results. An uptick in the price of New Zealand’s key commodity would give the New Zealand dollar a lift.
Conversely, upbeat US jobs data on Friday would be negative for both the Australian and New Zealand dollars as it would increase the odds of a third US rate hike taking place before the end of the year.
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)