The US Dollar was the weakest currency last week as it was hit by a string of economic indicator. New Zealand dollar was the strongest one with the NZD/USD hitting a three year high of 0.8793, not far from record high of 0.8842. Canadian dollar closely followed and with the USD/CAD extending recent fall to as low as 1.0664. There are also some other bearish signs seen in the greenback. The USD/JPY resumed recent fall from 102.79 and is heading towards 100.65/82 key support zone. Meanwhile, the USD/CHF also closed below 0.8907 support, which affirmed near term bearishness. Though, the EUR/USD and GBP/USD were still stuck in established range.
The dollar index extended recent fall fro 81.02 and reached as low as 80.01 before closing at 80.04. There were two bearish development in the index. Firstly, it has firmly taking out a flat 55 days EMA. Secondly, daily MACD turned negative. There is no confirmation of a bearish reversal yet with 79.88 support intact. But the the downward acceleration is making this support level a bit vulnerable. The greenback will face strong tests from ISM manufacturing, ISM services and non-farm payroll report this week. Those data will be crucial in determining whether dollar will turn broadly bearish.
Elsewhere, there were some developments to note. The yen rallied after released a string of economic data, including inflation. Both the USD/JPY andGBP/JPY extended recent fall but EUR/JPY was bounded in tight range. The quarterly Tankan survey to be released this week could trigger some more volatility in the yen. The euro is stuck in range against dollar, yen, sterling and even aussie. Eurozone CPI, PMIs and ECB rate decision are needed to provide some direction for the common currencies.
Sterling's momentum was hampered by confusing messages from BoE governor Carney. But market will look into PMIs from UK this week. Canada will release GDP. The Aussie lagged behind Canadian and Kiwi and will look into RBA statement, trade balance, retail sales and China PMIs for some boosts to catch up.