A particularly low-key week for the Aussie brought almost no Australian economic statistics. New home sales went up by 1.1% in April, slightly more than expected, and private sector credit was in line with forecasts, increasing by 5.0% in the year to May. So investors were focusing elsewhere, and with good reason. The European Central bank chief suggested on Tuesday that when economic conditions are suitable he would consider raising interest rates. His colleague at the Bank of England said a similar thing the following day.
Whilst it is quite possible that investors overreacted to what were really quite anodyne statements of the blindingly obvious, they did react, buying the euro and the pound. The two were unchanged against one other on the week and sterling added one Australian cent. The Aussie still had a better than average week though, strengthening by one and a half US cents.