The Australian dollar followed a jagged track lower against the US dollar, giving back most of the previous week's gains for a loss of one US cent. It was more successful against sterling, which has been delivering consistently underwhelming results ever since investors twigged that there is a significant risk of Britain voting itself out of the European Union in June. On the week the Aussie added three quarters of a cent against the pound.
Tuesday's decision by the Reserve Bank of Australia to keep its Cash Rate steady at 2% did not come as a surprise but the reassurance did spark a brief relief rally for the dollar. The previous day's retail sales data were less helpful. Having expected to see sales increase by 0.4% in February investors were unimpressed so find out they had been flat on the month. A wider-than-expected trade deficit made little difference to the Aussie because investors were focused on the imminent RBA rate announcement.