Last Week Market Recap
Monday 26th June 2017
Reversed direction, trading lower last week as the RBA’s Monetary Policy Meeting Minutes showed the central bank was confident that growth would resume, while the decline in the price of oil negatively affected the rate. The week began with the rate selling off after making its weekly high of 0.7628 on Monday despite comments from RBA Governor Phillip Lowe, who said in a speech that, “Monetary policy continues to provide support and survey-based measures of business conditions have improved noticeably. Employment growth has also strengthened over recent months. These are all positive developments.” The pair extended its losses on Tuesday after the RBA’s Monetary Policy Meeting Minutes noted that, “Over the past couple of years, the Australian dollar has traded in a fairly narrow range. This followed a significant depreciation in nominal and real exchange rates from 2013 alongside a decline in Australia's terms of trade. Recently, the Australian dollar has depreciated a little reflecting a fall in the price of iron ore. Volatility in the Australian dollar remains below average.” The pair continued its decline on Wednesday as the price of crude oil fell to $42 per barrel, while the United States reported a better than expected housing number. The pair then made its weekly low of 0.7534 on Thursday as U.S. Initial Jobless Claims were in line with expectations. The rate gained ground on Friday despite a better than expected U.S. housing number, which brought the rate to close at 0.7566, with a loss of -0.6% for the week.