The Australian dollar depreciated vis-à-vis the U.S. dollar last week as the Aussie tested bids around the US$ 0.8660 level and was capped around the US$ 0.8855 level. The pair lost about 70 pips last week. RBA’s Corbett said the domestic economy remains very robust. RBA kept rates unchanged at 6.75% and said it is concerned with inflation.

Data released in Australia last week saw the October trade deficit print at –A$ 2.98 billion; October building approvals were off 2.8% m/m; October retail sales were up 0.2% m/m; Q2 GDP rose 1.0% q/q and 4.3% y/y; and the performance of construction index fell in November.