The Aussie Dollar ended last week pretty much where it began against a USD which lost quite a bit of ground late Thursday and into Friday. The AUD/USD pair opened last Monday in Sydney at 0.7650 and in one of the quietest weeks in recent memory remained stuck in a range of less than 60 pips from 0.7636 to 0.7694 before ending at USD0.7659.
This calm came despite the much-anticipated RBA meeting and the new Quarterly Statement of Monetary Policy; neither of which really shifted the dial much on interest rate expectations. Against this background, a new monthly round of incoming economic begins for the RBA to then consider at their last meeting of the year on Tuesday December 5th.This kicks off with the NAB Business Survey tomorrow, then Wednesday it’s the quarterly wage price index and Thursday it’s the employment and unemployment numbers.
Like most Central Banks around the world, the RBA has been a bit puzzled as to why falling joblessness hasn’t so far boosted earnings growth. And, like all the others, it just says “give it time, it will happen”. Interest rates in Australia aren’t going to move much, if at all, until wages actually do pick up, and it looks like being a quiet start to the week for the AUD, with a Guy Debelle speech on business investment the local highlight today.