Having peaked last Thursday the Australian dollar spent the next two days on the retreat before stabilising on Tuesday. In common with most emerging market and commodity-related currencies it was undermined by a suspicion that central banks in Japan and Germany are coming under political pressure to rethink their aggressive quantitative easing activities, which have flooded the world with ultra-cheap money for several years.

The only significant Australian economic statistics related to jobs. They were inconclusive, insofar as they showed both a loss of jobs in August and a fall in the rate of unemployment. Ecostats from the UK were broadly positive but not sufficiently so to enthuse new buyers of the pound. In the States a fall in retail sales further lessened the likelihood of an interest rate increase by the Federal Reserve next week. In the end the Aussie lost one and a quarter US cents and was down by a cent and three quarters against sterling.