Oceania started the week with negative news on monthly Retail Sales of Australia and quarterly Inflation Expectation of New Zealand on Tuesday. The Australian Bureau of Statistics announced the Retail Sales of April at 0.0%, a considerable fall from the forecast of 0.2%. The AUD/USD immediately reacted with a fall of 0.31% to 0.75148 at the end of the day. In addition, a slight fall of the Inflation Expectation from the previous quarter’s 2.1% to 2.0% also played an important role in the considerable decrease of NZD/USD from 0.70113 to 0.69706, which was a fall of 0.58%.
The top leaders of the U.S had the important speeches about the country’s monetary and diplomacy policy. From a conference in Zurich, Fed Chairman Jerome H.Powell provided his positive review on the application of Fed’s policies on the market: “Fed policy normalization has proceeded without disruption to financial markets, and market participants’ expectations for policy seem reasonably well aligned with policymakers’ expectations”. However, the center of world’s news on the same day was on Mr. Trump’s decision to pull the U.S out of the Iran deal, which was not agreed by all the allies, especially England and Germany. The USD exchange rate against other major currencies rose on Tuesday. In Australia, the Annual Budget was released with the focus on high spending, which was followed by a surprising fall of 0.85% for AUD/USD exchange rate to 0.74500.
On the next day, the U.S proclaimed the monthly PPI falling to 0.1% from March’s 0.3%, while the weekly crude oil inventories had a serious change from 6.2M to -2.2M. It was continued with a series of statements and speaks from New Zealand, including the official cash rate kept stable at 1.75% and the new Reserve Bank governor Adrian Orr’s positive overview on the market. The NZD/USD exchange rate was fortified by his announcement with a gentle rise of 0.09% to 0.69802.
Thursday was covered by news on monetary policy in England. The bank rate was unchanged from last month’s 0.5%. The Monetary Policy Committee’s vote on interest rate was exactly to be 2-0-7 as forecasted _ a hold-rate decision, which appeared to mark a change of thinking for BOE Governor Mark Carney, who earlier this year had expressed his hawkish view on the interest rate. Meanwhile, the monthly Manufacturing Production had a slight increase from -0.2% to -0.1%. The GBP/USD exchange rate responded with an inconsiderable change around 1.35446. On the other shore of the Atlantic, the monthly CPI and core CPI of April was announced with a decrease in both indices. The CPI landed at 0.2% from the forecast of 0.3%, while the core CPI got the same fall of 0.1% from last month’s 0.2%. The US Dollar found itself weakening versus other major currencies after the releases.
Canada's April jobs report with the economy the number of new jobs dropped as wage growth speeded up. The country lost 1,100 jobs as Statistics Canada showed on Friday, which was a huge distance from the preceding forecast at 17.800 new jobs created. The unemployment rate was virtually unchanged at 5.8%, the lowest in a decade and in-line with expectations. The USD/CAD reacted with a rise from 1.27915 after two days plunging from 1.29463 on Tuesday. In Europe, ECB President Draghi had his speech about the recovery after the global financial crisis, posting a relatively positive view on the market in near time.
In the cryptocurrency sector, the world’s most famous one this week has a downtrend this week. At the time of writing, BTC/USD is trading around $8,622.