- After a strong start, the Australian dollar’s week went from bad to worse. It lost ground on Tuesday after an underwhelming service sector report out of China, Australia’s biggest trading partner. This coincided with a statement from central bank policy makers which, after the bank announced that borrowing rates will be held at the record low of 2.5%, reiterated the consensus that they plan to have a ‘period of stability with rates’. The soft footing on which the Australian dollar found itself was made weaker still yesterday morning after employment figures came in below forecast.
- The Russian rouble had a similarly bad time of it this week, as global tensions rose regarding the Russian-Ukraine conflict. After announcements last week of trade sanctions enforced upon Russia from countries across the world, specifically from the EU bloc, Russia responded yesterday with trade sanctions on Europe, banning all food imports. As a result, we saw the rouble drop off to 3-month lows. Russian stocks and bonds also felt the squeeze.
- The Indian rupee gained yesterday, lifting it from 5-month lows following the government’s announcement that they will look to boost overseas investment in the rail and defence industries.
Looking forward to today, employment figures out of Canada could reinforce what has been a good week for the North American currency. We also have a monetary policy statement and press conference from the Bank of Japan, as well as Chinese trade balance figures.
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