You've landed on our UK website.
Click here to visit our USA website.

If you are having difficulty locating the information you require, we're here to help. Just get in touch and we will do our best to assist you.

Weekly Roundup: Softening Chinese economy drags on risk-sensitive Australian dollar

currency-newsWeekly Roundup: Softening Chinese economy drags on risk-sensitive Australian dollar
With forecasts pointing towards a slowdown in Chinese economic activity thanks to the spread of the Wuhan coronavirus markets saw little reason to favour risk-sensitive assets such as the Australian dollar.

The latest commentary from the Reserve Bank of Australia (RBA) failed to shore up AUD exchange rates, meanwhile, as policymakers lowered their economic forecasts.

With signs pointing towards a weaker year of growth for the Australian economy the Australian dollar was left on the back foot, even as the odds of an interest rate cut appeared to diminish.

A better-than-expected fourth quarter unemployment rate offered a degree of support to the New Zealand dollar, meanwhile.

Demand for the New Zealand dollar could easily weaken in the near future, though, if the Reserve Bank of New Zealand (RBNZ) shows any signs of dovishness at its February policy decision.

Signs that the RBNZ could be willing to cut interest rates before the end of the year may drag NZD exchange rates lower.

Without an improvement in the latest NAB business confidence and Westpac consumer confidence indexes the Australian dollar could struggle to recover ground.
Philip McHugh

Philip McHugh

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)

Check our exchange rate

Thanks, we'll be in touch.

Check your inbox - one of our currency experts will be in touch to complete your quote.

If you want see our online exchange rates straight away, simply register online & log in.