AUDUSD (0.72): The Australian dollar is into its second week of gains, closing the week with 0.30% gains to the US Dollar. Prices touched a weekly high of 0.7372 before pulling back to close the week at 0.7294. Data from Australia this week was limited to the private sector credit, which grew at a modest pace of 0.40% falling short of 0.60% estimates. Among the commodity risk currencies, the Aussie emerged on the tops managing to beat the Kiwi dollar which has been in a steady intermediate term uptrend over the past few weeks.
- Private sector credit 0.40% vs. 0.60%
EURUSD (1.08): The Euro closed the week with -0.75% losses to the US Dollar after a failed attempt to rally back above 1.10 handle. Prices touched an intra-week high of 1.0983 before easing back strongly to close the week at 1.0871. Overall, EURUSD remains range bound although breaking below last week’s low. 1.08 – 1.085 remains a key support level which if broken could see a decline down to 1.0625 level of resistance. Economic data from Eurozone was limited to Spain CPI which stayed flat on an annualized basis while private lending managed to increased 1.40% on an annualized basis.
- Spain flash CPI y/y 0.0% vs. 0.10%
- M3 Money supply y/y 5.10% vs. 5.20%
- Private loans y/y 1.40% vs. 1.30%
NZDUSD (0.68): The Kiwi was modestly weaker, down -0.03% for the week. However, NZDUSD touched a 10-week high at 0.6878 before pulling back to close the week at 0.683. There were no economic releases from New Zealand this week but the Kiwi managed to stay firm and at one point was the strongest currency amongst the risk commodity currencies.
USDJPY (120.2): The Yen continued to firm against the US Dollar as the USDJPY declined -0.06% for the week and marking a third consecutive week of declines. Prices closed at 120.21 on Thursday posting an 8-week low. Data from Japan this week included the retail sales numbers which declined -1.0% on an annualized basis while the preliminary industrial production was down -1.0%. The Yen was trading stronger across the board in what looks to be a squaring off of positions into the year end.
- Retail sales y/y -1.0% vs. -0.10%
- Prelim industrial production m/m -1.0% vs. -0.40%
USDCAD (1.38): The US Dollar was trading mixed during this week and was marked by relative sideways price action. However, the Canadian dollar was modestly stronger, posting a second week of gains as USDCAD declined -0.18% for the week. The declines come just after prices touched a multi-year high of 1.398 last week. Strong support was established near 1.383 level, which was tested multiple times over the week. There were no major economic releases from Canada during the week, leaving the Loonie to continue tracking Oil prices.
GBPUSD (1.47): The British Pound was one of the weakest currencies this week as GBPUSD closed down with -1.27% losses. GBPUSD marked a third consecutive week of declines, closing the week at 1.4738 , last seen in April 2015. Prices continued to decline steadily since the start of the week and despite lack of any major economic data, the Pound remained weak across the board.
- Nationwide HPI m/m 0.80% vs. 0.40%
- Housing equity withdrawals q/q -8.8bn vs. -10.5bn
USDCHF (0.99): The Swiss Franc was weaker, with USDCHF gaining 1.25% for the week. Prices touched a weekly high of 1.001 before easing back to close the week at 0.9995. Data from Switzerland was limited to the UBS consumption indicator, which came out softly higher at 1.66 from 1.63 previously.
- USB consumption indicator 1.66 vs. 1.63 previously
US Dollar Index (98): The US Dollar Index closed the week with 0.70% gains as price managed to recover strongly off the weekly lows near 97.85. The strong reversal marks a bounce after the US Dollar Index posted a sharp decline last week. Data from the US this week included a better than expected pending home sales numbers and goods trade balance. The CB Consumer confidence was also stronger at 96.5 against estimates of 93.9 previously. The weekly jobless claims however increased to 287k beating estimates of 274k.
- Goods trade balance -60.5bn vs. -60.9bn
- S&P/CS HPI y/y 5.50% vs. 5.60%
- CB Consumer confidence 96.5 vs. 93.9
- Pending home sales 2.6Mn vs. -1.8Mn
- Weekly unemployment claims 287k vs. 274k
- Chicago PMI 42.9 vs. 50.4
