Australian Dollar Boosted, Trump to Leave NAFTA

Market Reviews

Australian dollar has been lifted by positive retail sales. Japanese Yen maintains the position of the strongest after BoJ reduced its long-dated bond purchases and some thought it was a first step in the stimulus exit. Today, European Central Bank will publish a protocol of December meeting. We’ll also get industrial production from the Eurozone, new housing price index from Canada and PPI and jobless claims from the United States.

Dollar has once again dropped as China government started thinking about reducing or freezing its buying of US Treasuries. But, there is still a chance for greenback to recover. Loonie has slightly weakened as Canadian government claimed that Donald Trump is most likely to leave the NAFTA, which will bring a tremendous harm for the US economy. On January 23, members of the agreement will meet in Quebec and discuss the issue.

Australian retail sales increased 1.2% mom in November. Investors started hoping that Reserve Bank of Australia will execute a rate hike. As of Fed, Charles Evans (Chicago Fed President) stated that due to rising inflation, he would like to wait a little and not to raise rate at least in the first half of 2018.