Starting at home, the Aussie shrugged off a mixed employment reading that ultimately didn’t excite the market either way. In a good headline, the Australian economy saw the unemployment rate fall but also saw the number of employed people added to the economy fail to meet expectations.
Macro-economic events dominated market focus overnight with the stage set initially by the US FOMC. Early yesterday morning, the FOMC released a decidedly hawkish statement that saw the USD surge higher. However, despite the hawkish statement and indeed the US interest rate hike, the Aussie remained relatively resilient. The soft Greenback was then kicked into higher gear, when month on month retail sales data was released, posting a significant expansion of retail sales. Closing out a tumultuous day, the ECB then posted a determinedly dovish policy statement, pushing back the expected interest rate hike to September 2019 and driving the USD even higher.
The Australian Dollar now looks to take a breath to close out the week with an empty domestic calendar to look forward to. Attentions now turn to the Bank of Japan and their upcoming policy statement release.