Last Week Market Recap
Monday 22nd May 2017
Reversed direction, gaining ground last week as commodity and oil prices rallied while the RBA Monetary Policy Meeting Minutes reiterated the importance of the property and labour markets in Australia. The week began with the rate rallying after making its weekly low of 0.7383 on Monday after a lower than expected U.S. manufacturing number. The pair extended its gains on Tuesday after the RBA’s Monetary Policy Meeting Minutes for its May 2nd meeting noted that, “The Board continued to judge that developments in the labour and housing markets warranted careful monitoring. Taking into account all the available information and the updated forecasts, the Board's assessment was that maintaining the current accommodative stance of monetary policy would be consistent with achieving sustainable growth and the inflation target over time.” The rate gained another fraction on Wednesday after the Australian Wage Price Index increased by +0.5% q/q as was widely anticipated. The pair then lost a fraction on Thursday despite Australian Employment Change, which showed the addition of +37.4K jobs in April compared to an expectation of +4.5K, while the Unemployment Rate dropped to 5.7% from 5.9%. Friday saw the rate make its weekly high of 0.7468 in the absence of any significant data out of either country. AUD/USD closed at 0.7454, with an overall weekly gain of +1.0%.