The euro slumped on Thursday following the European Central Bank’s (ECB) latest interest rate decision.
With relations showing fresh signs of worsening investors were encouraged to pile out of risk-sensitive currencies, prompting AUD and NZD exchange rates to weaken.
The Australian dollar also came under pressure thanks to the disappointing nature of the third quarter Australian gross domestic product data.
As growth eased significantly on the quarter, dipping from 0.9% to 0.3%, confidence in the outlook of the economy naturally diminished.
While the Global Dairy Trade auction finally showed an uptick in prices this was not enough to boost the New Zealand dollar, meanwhile, thanks to the long period of decline dairy prices have seen.
Unless November’s food price index points towards an increase in inflationary pressure the mood towards the New Zealand dollar is unlikely to improve.
Some support could be in store for the Australian dollar, meanwhile, if the latest business and consumer confidence indexes print positively.
A lingering sense of market risk aversion is likely to weigh on the AUD and NZD exchange rates for some time to come, however.
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)