The euro slumped on Thursday following the European Central Bank’s (ECB) latest interest rate decision.
The commodity correlated Australian dollar and New Zealand dollar have largely been able to make gains over the past week, with several indications that a global trade war may be avoided helping to reawaken market appetite for risk.
Data was in short supply, with markets little interested by a small uptick in the ANZ activity outlook for New Zealand and a 5.7% increase in building permits issued month-on-month according to figures released on Wednesday, or Thursday’s mildly better-than-forecast rise in Australian private sector credit growth during February.
Market sentiment was therefore the key driving factor for both AUD and NZD.
The Antipodean data calendar is fairly quiet for the remainder this week, with Australia accounting for the bulk of data releases.
Wednesday’s ANZ Roy Morgan weekly consumer confidence index and Australian building approvals and retail sales figures, along with the AiG performance of services index could keep the Australian dollar on volatile form, while the New Zealand dollar is likely to have more impactful things to react to than house prices and ANZ job advertisements data.
Thursday’s Australian trade balance figures could weaken AUD exchange rates, given that the surplus is expected to fall from AU$1.05 billion to AU$725 million.
The biggest influencer for both the Australian dollar and the New Zealand dollar is likely to be Friday’s US labour market data, including the hugely impactful non-farm payrolls report and unemployment rate figures, topped off with a speech from chair of the Federal Reserve Jerome Powell, on the topic of the economic outlook.
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)