The central bank surprised the markets last week by maintaining interest rates at 4.25%. The markets had predicted a 0.25% cut, which would have likely pushed the aussie downwards.

Last week mixed results were released amid an unexpected drop in Japan’s core machinery orders, with a 7.1% drop in December indicating the stagnating effect of the strong yen and the global slowdown. However consumer sentiment unexpectedly increased to 40 from 38.9 while expected to reach 38.6. Will Japan be able to hold off a deeper decline?

The British Monetary Policy Committee expanded the Asset Purchase Facility by an additional 50 billion pounds to £325, as was expected. The pound rose on news of the QE release, breaking through the 1.59 level, before retracting at the end of the trading week.

Last week positive labor market data was published with an unexpected drop in New Zealand’s unemployment rate in the fourth quarter decreasing to 6.3% from 6.6%, better than the 6.5% predicted. Furthermore, Labor Cost Index improved by 0.7% in the last quarter from 0.5% gain in the third quarter. Will New Zealand continue ots recovery?

ECB President Mario Draghi left rates unchanged and expressed a lot of confidence in the press conference. In a last moment statement, Draghi also left the door open for an ECB contribution to Greece. Unfortunately for Greece, it first has to comply with the troika’s demands and pass harsh austerity legislation, before it is awarded any help.

USD/IDR closed the week at 9,050, the highest since the beginning of January and higher than the 8,750 to 9,000 range seen in recent weeks.

Last week positive readings were released with surprisingly elevated reading for the Canadian Ivey Purchasing Managers Index (PMI) rising to 64.1 from63.5 in December suggesting a major improvement in the market’s future activity and better than expected housing data with a boost of 11.1% in the Canadian building permits, highest jump since June 2007. Is Canada on a strong recovery path? Let’s Start:

Last week ECB president Mario Draghi’s remark at the ECS press conference provided a loop hole to contribute to the Greek bailout, by suggesting to distribute profits from Greek bonds to Greece. Meantime Greece is in a vicious cycle while the austerity measures posed by the EU paralyze market activity lowering consumption which in turn produces less tax revenues to cover its growing debt. Will Draghi’s suggestion help the struggling nation? Let’s start:

Mario Draghi was a star once again. The moderator of the press conference already thanked the reporters, when Draghi had a “one more thing” moment, in which he gave a general outline about how Greece can receive aid from the ECB. This theme will remain with us for a long time.

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