The pound trended lower on Wednesday after the UK’s latest GDP figures prompted a warning from the UK Chancellor.
Investors were discouraged by the revelation that export volumes had plunged -5% on the month, highlighting the Australian economy’s continued vulnerability to global trade tensions.
With the Reserve Bank of Australia (RBA) already showing signs of increased dovishness AUD exchange rates were left biased to the downside.
A sharp monthly uptick in the ANZ commodity price index was not enough to give the New Zealand dollar any sustained support, meanwhile.
Another negative month for the New Zealand food price index could put an additional dampener on NZD exchange rates, as worries over the domestic inflation outlook linger.
Support for the Australian dollar looks vulnerable ahead of the RBA’s latest economic bulletin, which could reaffirm a more dovish tilt in stance.
As long as the RBA appears on course to cut interest rates in 2020 the appeal of the Australian dollar is likely to prove muted.
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)