The pound collapsed on Friday as markets were rattled by the contents of UK Chancellor Kwasi Kwarteng’s mini-budget.
AUD and NZD both came under pressure last week as an uptick in the US dollar and the closure of Chinese markets for the Lunar New Year severely limited the appeal of the higher-yield currencies.
On top of this, further weakness in the New Zealand dollar was driven by a slide in dairy prices at the latest global auction, while better-than-expected retail sales appeared to provide little lift for the ‘Kiwi’.
At the same time the Australian dollar’s losses were compounded by the minutes from the Reserve Bank of Australia’s (RBA) latest rate decision, with the bank appearing to remain in no rush to hike rates this year.
Upcoming data is unlikely to be much more supportive of the ‘Aussie’ this week either, with analysts forecasting that Australian manufacturing activity will have slowed this month.
Meanwhile the New Zealand dollar is likely to face further losses as the latest domestic trade figures are expected show that the country ran a large trade deficit at the start of 2018.
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)