There was little respite to the downward pressure on commodities, with the broadly-based Bloomberg commodities index coming close to its lowest level since 1999. As was the case in the previous week, there was no consistency in the performance of the commodity-oriented currencies.
The Canadian dollar fell further than the Aussie and the NZ dollar did relatively well. A problem for all of them was the US Federal Reserve's long-awaited decision to raise the target for its benchmark interest rate from 0-0.25% to 0.25-0.5%. Although it was not a surprise, it reinforced the expectation that US rates will continue to move higher over the next 12 months, narrowing the gap with returns available elsewhere.
The outcome for the Aussie was a loss of one US cent. Even though the British pound also had a difficult week, the Australian dollar was minutely lower against that too.