| MI Inflation Gauge m/m |
0.3% |
0.2% |
|
| Retail Sales m/m |
-0.4% |
0.2% |
1.3% |
| ANZ Job Advertisements m/m |
-1.3% |
-0.5% |
|
| AIG Construction Index |
35.2 |
39.0 |
|
| Trade Balance |
0.31B |
0.20B |
-0.11B |
| HPI q/q |
0.1% |
1.9% |
2.0% |
| Cash Rate |
2.75% |
3.00% |
3.00% |
| Employment Change |
50.1K |
11.5K |
-31.1K |
| Unemployment Rate |
5.5% |
5.6% |
5.6% |
A very interesting week has passed for the Australian dollar and economy. After a very low retail sales compared with March data, RBA finally announced an interest rate cut with 0.25%. It came as a surprise, but we expected this for some time now. The low readings from the labor market and the low inflation made space for this change. After this monetary policy announcement, we saw that in April the employment was above expectations while the unemployment rate has fell 0.1%.
AUDUSD fell 2.6 percent last week. The trigger was the interest rate cut, after that the dollar has strengthened and pushed this currency pair even lower. Even though the price touched a low at 0.9960 the week has closed over parity. For next week we can expect a short bounce before a down move continuation.
Wrap Up 6-10 May AUDUSD Down 2.69% On Rate Cut by Razvan Mihai
