AUDUSD (0.73): The Aussie along with the Kiwi were victims of the Yuan devaluation this week. AUDUSD fell -0.49% for the week and remains under pressure. This week was relatively quiet for Australia in terms of economic data. Wage price index for the quarter managed to meet estimates rising 0.6% while the MI inflation expectations also increased to 3.7%. The AUDUSD tested the weekly highs near 0.744 before declining lower below 0.723 to settle back trading near 0.7375.
- NAB business confidence 4 vs. 8 previously
- Westpac consumer sentiment 7.8% vs. -3..2% previously
- Wage price index q/q 0.6% vs. 0.6%
- MI inflation expectations 3.7% vs. 3.4% previously
EURUSD (1.11): The Euro was no doubt the strongest currencies last week as EURUSD gained 1.73%. Although economic data from Eurozone was mixed, including a flat CPI print and the quarterly GDP missing estimates the Euro remained sturdy against a volatile US Dollar. Greece managed to clinch a deal as the debt negotiations continue to progress which will see the country receive its third bailout subject to a vote from the various national parliaments.
- Sentix investor confidence 18.4 vs. 20.2
- German WPI m/m 0.1% vs. 0.2%
- German ZEW economic sentiment 25 vs. 31.7
- Eurozone ZEW economic sentiment 47.6 vs. 43.9
- German final CPI m/m 0.2% vs. 0.2%
- France final CPI m/m -0.4% vs. -0.4%
- France preliminary GDP q/q 0.0% vs. 0.2%
- German preliminary GDP q/q 0.4% vs. 0.5%
- Italy preliminary GDP q/q 0.2% vs. 0.3%
- Eurozone GDP q/q 0.3% vs. 0.4%
- Eurozone final CPI y/y 0.2% vs. 0.2%; Core CPI y/y 1.0% vs. 1.0%
NZDUSD (0.65): The Kiwi continued to remain under pressure as NZDUSD fell -1.07% for the week. The initial weakness came in as a result of the Yuan devaluation but the currency managed to pare its losses the next day. The Kiwi then weakened considerably as the quarterly retail sales report saw a weak growth of only 0.1% on the headline and the core, which sent the Kiwi back to trading near the 12 month lows.
- Business NZ manufacturing index 53.5 vs. 55.1 previously
- FPI m/m 0.6% vs. 0.5% previously
- Retail sales q/q 0.1% vs. 0.5%; core retail sales 0.1% vs. 0.7
USDJPY (124.2): The USDJPY was mostly flat this week despite the currency pair seeing some strong volatility. USDJPY tested the weekly highs above 12.23 before posting weekly lows near 123.815 only to settle back near the opening price for the week. Data from Japan was mostly limited to the prelim machine tools orders which grew at a pace of 1.6% falling below estimates while the industrial production rose 1.1% for the month.
- Current account 1.3 trillion vs. 1.41 trillion
- Bank lending y/y 2.6% vs. 2.5%
- Consumer confidence 40.3 vs. 42.2
- Economy watchers sentiment 51.6 vs. 53.1
- Preliminary machine tool orders y/y 1.6% vs. 6.6% previously
- PPI y/y -3% vs. -2.9%
- Revised industrial production m/m 1.1% vs. 0..8%
- Tertiary industry activity m/m 0.3%
- Core machinery orders m/m -7.9% vs. -5.3%
USDCAD (1.30): The USDCAD was weaker this week trading -0.46% lower for the week. The Canadian dollar managed to hold its ground despite losses in the Crude Oil prices. USDCAD was however very volatile over the week trading within the weekly highs of 1.31815 and the lows below 1.29635. Economic data from Canada continued to stay mixed with housing starts rising less than expected while the house price index gained 0.3% for the month beating estimates.
- Housing starts 193k vs. 205k
- NHPI m/m 0.3% vs. 0.1%
- Manufacturing sales m/m 1.2% vs. 2.3%
GBPUSD (1.56): GBPUSD posted modest gains this week with 0.85% change. However the currency was seen trading sideways for the most part and remains stuck below the resistance at 1.565 and support at 1.556. Economic data from the UK this week saw the monthly jobs report hold steady as the unemployment rate was unchanged at 5.6%. The average earnings index fell softly below estimates rising 2.4% against estimates of 2.8%. Besides the unemployment report there were no other major market moving events from the UK.
- BRC Retail sales monitor y/y 1.2% vs. 1.8% previously
- Average earnings index 3m/y 2.4% vs. 2.8%
- Unemployment rate 5.6% vs. 5.6%
- Claimant count change -4.9k vs. 1.4k
- RICS house price balance 44% vs. 42%
- Construction output m/m 0.9% vs. 2.4%
USDCHF (0.974): The Swiss Franc was trading stronger this week across the board as the USDCHF feel over -1% for the week. There was no major economic data scheduled from Switzerland with the exception of the producer price index, which fell -0.3% against estimates of -0.2%. The ZEW economic expectations managed to rise 5.9, up from -5.4 previously.
- ZEW economic expectations 5.9 vs. -5.4 previously
- PPI m/m -0.3% vs. -0.2%
US Dollar Index (96.3): The US Dollar failed to capitalize on the Yuan devaluation as the US Dollar Index posted losses shedding -1.36% for the week at the time of writing. Economic data from the US this week saw the preliminary unit labor costs and nonfarm productivity both gaining 0.5% and 1.3% for the quarter. Retail sales also managed to meet estimates while the unemployment claims rose more than expected. There were a few Fed speeches earlier in the week but the markets focused more on the Yuan devaluation than the speeches. The US Dollar Index tested the highs of 97.95 early in the week to trade near weekly lows of 96.
- NFIB small business index 95.4 vs. 95.4
- Preliminary unit labor costs q/q 0.5% vs. 0.0%
- Preliminary nonfarm productivity q/q 1.3% vs. 1.6%
- Wholesale inventories m/m 0.9% vs. 0.4%
- Core retail sales m/m 0.4% vs. 0.4%; retail sales m/m 0.6% vs. 0.6%
- Weekly unemployment claims 274k vs. 272k
- US Import prices m/m -0.9% vs. -1%
- Business inventories m/m 0.8% vs. 0.3%
- PPI m/m 0.2% vs. 0.1%; Core PPI m/m 0.3% vs. 0.1%
