The euro slumped on Thursday following the European Central Bank’s (ECB) latest interest rate decision.
With exports holding up in the face of increased global trade tensions confidence in the outlook of the New Zealand economy improved.
This helped to limit bets that the Reserve Bank of New Zealand (RBNZ) could cut interest rates in the near future, benefitting NZD exchange rates.
However, as the general sense of market risk aversion picked up this left both the New Zealand dollar and Australian dollar on a weaker footing at the start of the new week.
Any dip in Australia’s third quarter inflation rate may put additional pressure on AUD exchange rates on Wednesday.
Focus will also fall on September’s Australian trade data, with forecasts pointing towards a widening of the trade surplus on the month which could give the Australian dollar a boost.
As long as geopolitical risks dominate the market outlook the mood towards the New Zealand dollar is unlikely to improve, meanwhile.
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)