Last Week Market Recap
Monday 21st August 2017
AUD/USD reversed direction, gaining ground last week as the RBA Meeting Minutes for its August meeting indicated policymakers were optimistic about the global and domestic economies. The week began with the pair selling off on Monday in the absence of any significant data from either country. The rate extended its losses on Tuesday, making its weekly low of 0.7807 after the release of the RBA’s Meeting Minutes, which predicted an annual growth rate of 3% for the Australian economy, nevertheless, policymakers expressed concern with the rising Aussie exchange rate, noting that, “a further appreciation of the exchange rate would be expected to result in a slower pick-up in inflation and economic activity than currently forecast.” On Wednesday, the pair gained sharply after a dovish FOMC Meeting Minutes, and the Australian Wage Price Index, which increased by +0.5% q/q, in line with expectations. The rate then made its weekly high of 0.7961 on Thursday after Australian Employment Change showed an increase of +27.9K compared to an expectation of +19.8K with the previous number upwardly revised from +14.0K to +20.0K, while the Australian Unemployment Rate held steady at 5.6%. The pair gained a fraction on Friday despite a better than expected U.S. consumer sentiment number. AUD/USD closed at 0.7922, with an overall gain of +0.4% from its previous weekly close.