Somewhat of a tough week for the Aussie on mixed but net bad economic updates and dovish monetary policy moves from the RBA.
Australia Headlines and Economic data
- AIG Manufacturing index falls 2.1 points to 52.7
- Australian job ads plunge by the most since the GFC but the fall may prove to be short-lived
- House values fall ahead of likely RBA rate cut
- A private survey shows China’s manufacturing activity for May was slightly higher than expected – the Chinese update was probably the driver for the Aussie as most pairs rose higher on the release despite the fall in Australian manufacturing, home values and job ads.
- Australian retail sales fall unexpectedly, led by steep declines in NSW and Victoria
- RBA cuts interest rates to a fresh record low – Not much reaction to this event as it was likely price in far ahead as economic data has disappointed in the past few months.
- Australia central bank chief says rates could go even lower – a quick bearish reaction in most Aussie pairs, but they were quick to bounce back within the next hour or so.
- Australia’s economy slows to levels last seen during the GFC – It’s likely that the combination of RBA Lowe’s comments on future rate moves and this GDP update did put pressure on the Aussie this week.
- Australian services PMI jumped 6 points in May to 52.5
- Commonwealth Services PMI up 1.4 to 51.5 in May versus April