Image via DUP Photos / Flickr. Picture by Kelvin Boyes / Press Eye.
The Australian dollar was the weakest currency last week led by the RBA’s 25bps rate cut and a weak inflation forecast which fueled speculation of another rate cut by August this year. As a result, the AUD fell over 3.11% this week marking the second week of declines and closing at a 9-week low. Commodity-linked currencies were broadly weaker with the CAD and the NZD losing out as well.
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Weekly Spot FX Performance – 06/05/2016 (Source: Finviz.com)
The US dollar managed to gain this week, despite starting off on a weak note and the US Dollar Index briefly falling to an 18-month low. By mid-week, the dollar posted a strong recovery while the yen, which also started the week on a stronger note gave back some of its gains.
Fundamentals for the Week 09/05 – 13/05
