Softer-than-expected economic data from the United States were broadly positive for commodity-related currencies, in that they lessened the pressure on the Federal Reserve to take US interest rates higher. Two in particular contributed to that thinking: fewer jobs than forecast were created in August and services sector businesses reported a slowdown in activity. The US dollar was thus the weakest among the major currencies over the seven days, losing more than a cent to the Kiwi.
Britain's pound was the second weakest, giving up two and a quarter NZ cents. Although sterling began the week well, with surveys of private sector activity delivering much better than expected results, the pound came a cropper after the Bank of England governor gave parliament his opinion on the UK interest rate outlook: he said the Monetary Policy Committee could decide to take the Bank Rate even closer to zero before the end of the year.