With the exception of the Norwegian krone and the South African rand, both of which fell by more than -2.5%, the Australian dollar put in the poorest weekly performance among the major currencies. It lost one and a half US cents and fell by three and a quarter cents against sterling.
The Aussie received some early help from an interest rate cut by the People's Bank of China, the argument being that extra monetary stimulus to the Chinese economy would also be positive for Australia's exports. It was a very different story when the Federal Reserve issued a policy statement which included the strongest possible hint that US interest rates would be increased in December. The Australian dollar was also hurt by an unanticipated slowdown in inflation: the headline rate was steady at 1.5% but the Reserve Bank of Australia bases its decisions on the "trimmed mean" measure and that went down from 2.2% to 2.1%.