The pound rocketed on Wednesday, striking a new six-week high against the US dollar amidst renewed hopes for a UK-EU Brexit trade deal.
Even so, as Australian efforts to curtail the spread of the virus pushed the infection rate to its lowest level in months, helping to limit the vulnerability of AUD exchange rates.
Added to this, stronger-than-forecast unemployment figures of 6.8%, lower than the expected 7.7%, lent some support to the Australian dollar.
Meanwhile, confirmation that the New Zealand GDP slumped by a better-than-expected -12.2% in the second quarter weighed on the appeal of the New Zealand dollar.
Evidence of the significant damage already done to the New Zealand economy left investors with little cause for confidence, keeping the antipodean currency on the back foot.
Any signs of dovishness at the Reserve Bank of New Zealand’s (RBNZ) policy meeting could see the New Zealand dollar losing further ground against its rivals on Wednesday.
If the RBNZ appears to be on track to ease monetary policy in the months ahead, NZD exchange rates are likely to come under renewed pressure.
With Australian data releases thin on the ground this week, the Australian dollar looks set to maintain a weaker outlook as global market jitters return.
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)