The attempted coup d'état in Turkey took place just in time for the New York FX market to react to it last Friday night. Investors' instant reaction was to offload anything commodity-related and stock up with safe-haven US dollars and Japanese yen. The Aussie remained on the retreat until the middle of this week and still shows no sign of recovery. Ahead of London's opening this morning the Australian dollar was down by a cent on the week against sterling and wearing a loss of one and a half US cents. The Aussie received no help whatsoever from a downgrade by the International Monetary Fund of its global growth forecast.

Nor did the Reserve Bank of Australia come to the Aussie's aid when it published the minutes of its last board meeting. The final sentence gave every impression that the board has a rate cut at the back of its mind.