As market anxiety over the Covid-19 pandemic lingered the Australian and New Zealand dollars struggled to find any major degree of traction, especially in the face of a resilient US dollar.
This unexpectedly confident move encouraged NZD exchange rates to trend higher, even as worries over the health of the New Zealand economy lingered.
The positive mood of the New Zealand dollar soon faded, though, as January’s manufacturing PMI failed to pull itself out of contraction territory.
Support for the Australian dollar, meanwhile, remained muted thanks to the latest bout of market anxiety over the spread of Covid-19 and its likely impact on the global economy.
Until markets see evidence that the infection rate is stabilising a sense of market risk aversion looks set to limit the upside potential of both the Australian and New Zealand dollars.
If the Reserve Bank of Australia’s (RBA) February meeting minutes fail to strike an upbeat tone AUD exchange rates are likely to remain on the back foot.
With forecasts also pointing towards an uptick in January’s unemployment rate the Australian dollar could face a bearish week.
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)