- Canadian raw material price index up 0.4% as expected
- Canadian industrial product price index down 0.5%
- Gold prices slipped to record lows below $1,100/ounce
- WTI crude oil below $42/barrel
- New Zealand building consents up 5.1% in Oct
Just as shopaholics were busy grabbing Black Friday doorbuster deals, forex traders also took advantage of bargain prices for dollar pairs. The U.S. currency capped off the week with a strong rally even with the lack of top-tier catalysts.
Commodity price tumble – Lower liquidity gave commodity market players more energy to push prices around, with sellers taking the upper hand for oil and gold. The precious metal broke below the $1,100/ounce major psychological floor and dipped to the $1,052/ounce levels – lows not seen since January 2010.
Crude oil prices weren’t immune to declines, as WTI crude oil broke fell $42/barrel while Brent crude oil is fighting to keep its head above $45/barrel.
Underlying Canadian inflation data – With no other major reports on deck during the U.S. trading session, forex junkies turned their attention to the medium-tier inflation readings from Canada. The raw material price index showed a 0.4% gain as expected, way slower than the previous 2.4% gain, while the industrial product price index printed a 0.5% drop, worse than the projected 0.1% dip.
Major Currency Movers:
USD – Even though most U.S. traders were still in a food coma after eating all that turkey during Thanksgiving, the Greenback still managed to make a few good moves here and there.
USD/JPY bounced back up to a high of 122.83 from an intraday low of 122.30, EUR/USD tested the resistance at 1.0600 then fell to 1.0583, GBP/USD gradually slid below the 1.5050 minor psychological support, and USD/CHF popped up to a high of 1.0326.
CAD – After raking in a few gains the previous day, the Loonie had to return ’em all when oil prices retreated.
USD/CAD found support at the 1.3300 area and climbed back to 1.3350, CAD/JPY consolidated for a bit then dipped to a low of 91.70, EUR/CAD bounced off 1.4100 to a high of 1.4177, and GBP/CAD made another attempt to break past the resistance at 2.0125.
- Japanese retail sales report at 11:50 pm GMT (0.9% expected, -0.1% previous)
- Japan’s preliminary industrial production data at 11:50 pm GMT (1.9% expected, 1.1% previous)
- New Zealand ANZ business confidence index at 12:00 am GMT (10.5 previous)
- Australian quarterly company operating profits at 12:30 pm GMT (1.1% expected, -1.9% previous)
- BOJ Governor Kuroda’s speech (anytime during Asian session)
Bonnie and Clyde, peanut butter and jelly, Kanye West and Kanye West. Some things just go well together.
Head on to Big Pippin’s Daily Chart Art for some pip-locking technical setups!