The ASX200(XJO) dropped lower this week with the open on Monday being 4999.4 AUD and closing on Friday art 4937.6 AUD.
Australian news for this week was the RBA leaving the cash rate at 2% as expected.
In commentary released in a statement after the board meeting, RBA governor Glenn Stevens said the Australian dollar has “appreciated somewhat recently, in part reflecting some increase in commodity prices, but monetary developments elsewhere in the world have also played a role”.
“Under present circumstances, an appreciating exchange rate could complicate the adjustment under way in the economy.”
Economic activity and also inflation both feed into the RBA’s evaluation of the appropriateness of the official cash rate.
A lower currency might assist the rebalancing of the economy, particularly to further boost rural and services exports.
We also saw steel maker Arrium announce it would be placed in voluntary administration.
The administrators do however believe the company’s Whyalla operations will still be able to operate.
Nine shares also slumped this week with the share price dropping 20 percent after the broadcaster said the full-year free to air advertising market will be smaller than anticipated.
Nine’s third-quarter TV revenues declined about 11 per cent compared to the prior corresponding period, when the Cricket World Cup was on, after about 30 per cent of scheduled play days were lost to the weather.
‘Nine’s summer of cricket was adversely impacted both by the weather and the standard of the competition,’ Nine said.
Bank of Queensland reported its first half profits were up.
Lifting first-half cash profit 7.2 per cent to $179 million, driven by strong mortgage growth.