Helped by better-than-expected economic data from China last Friday, investors were in a mostly positive mood and the commodity-related currencies were among the best performers of the week. It was not a one-way street though. On Monday morning the Aussie was hurt by news that OPEC had failed to reach an agreement to limit oil production. Even though Australia is a long way from being a major oil producer the currency also moved higher on Thursday in response to a 5% rise in oil prices.
The Australian dollar could not keep pace with the British pound. Sterling showed the other major currencies the way, adding more than one and a half Australian cents, while the Aussie went up by a third of a cent against the US dollar. Sterling's unusual and unexpected rally appeared to be the result of investors taking profits on their short positions.