The Australian Dollar is a bit firmer in London this morning after a week which wasn’t dramatically bad but nonetheless saw the currency slide to 6-month lows against the US Dollar (0.7503) and its worst level in almost 18 months against the British Pound (1.7985).
It began last Monday clinging on to a US 76 cents big figure as it awaited the final RBA Board meeting of the year and the high of the week at USD0.7650 came as investors scoured the Statement for clues about monetary policy. In truth, there were only some very minor tweaks to the Central Bank’s language. Wednesday’s GDP figures with a headline figure of +0.6% q/q pushed the AUD down to 0.7560 and Thursday’s trade numbers were yet another disappointment, falling to a surplus of just $105 million in October from $1.6 billion the previous month. AUD/USD broke through technical support at 0.7540 and with pressure continuing on Friday, it reached a low of 0.7503; the weakest since early June.
The third Ashes test begins in Perth on Thursday, just a couple of hours after the latest Australian employment report is released. It’s a toss-up which will be the bigger focus of attention in currency markets, though we suspect nostalgia about the final big match to be held at the WACA will probably get more column inches than a dull economic statistic. The AUD opens this hot Summer week at USD0.7525 whilst the Barmy Army convert their pounds at a rate of 1.7825.