The Australian economic data were not at all helpful to the Aussie Dollar. Activity in the services sector picked up slightly in October but was less vibrant than in North America and most of Europe. Exports rose by 1% in the same month but imports increased by twice that much. Crucially, gross domestic product data indicated an economic shrinkage of -0.5% in the third quarter. It was a far bigger contraction than investors had been led to expect.
Yet, as a rising tide lift all boats, the Aussie did almost as well as its peers in Canada and New Zealand. Investors were heartened by the positive way the euro coped with the Italian premier's referendum failure and by the European Central Bank's announcement that it would extend its money-printing asset purchase programme. Overall the Australian Dollar picked up half a US cent and it strengthened by a cent and three quarters against Sterling.