The pound continued to soften on Wednesday, slipping against many of its peers after domestic inflation failed to meet expectations.
This helped to overshadow a rather less encouraging Reserve Bank of Australia (RBA) financial stability report, which highlighted a number of threats facing the domestic economy.
The New Zealand dollar, meanwhile, was able to shrug off a decline in March’s manufacturing PMI.
With investors inclined to buy into risk-sensitive assets ahead of the weekend NZD exchange rates were quick to shake off this latest signs of economic softness.
If the latest set of RBA meeting minutes also appear dovish in nature this could see the Australian dollar trending lower across the board.
NZD exchange rates also look vulnerable to downside pressure on the back of the first quarter consumer price index, with forecasts suggesting an easing in inflationary pressure.
As long as the Reserve Bank of New Zealand (RBNZ) looks set to cut interest rates in the near future any support for the New Zealand dollar is likely to prove limited.
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)