Last week, the Australian Dollar surged against the U.S. Dollar, taking out the September 20 main top at .8102 and the September 8 main top at .8124 before stopping short of its May 4, 2015 main top at .8162 and a long-term 50% level at .8165. There wasn’t any major economic news from Australia last week. All of the price action was driven by a steep plunge in the U.S. Dollar. Higher commodity prices as a result of the weaker Greenback have also added further impetus to the Aussie strength.
The AUD/USD settled at .8108, up 0.0126 or +1.58%.
The New Zealand Dollar finished the week sharply higher despite some strong mid-week volatility, triggered by weaker-than-expected quarterly inflation data. The rally was fueled by the weaker U.S. Dollar.
The NZD/USD settled at .7355, up 0.0082 or 1.12%.
Last week, the New Zealand government reported that growth in its consumer prices unexpectedly slowed in the final quarter of 2017 as a sharp drop in the price of retail goods outweighed the effect of more expensive gasoline and air fares.
The consumer price index increased 0.1% from the previous quarter and 1.6% from a year earlier, Statistics New Zealand said Thursday, following a 0.5% rebound in the third quarter that brought the annual gain to 1.9% on year.
Economists were looking for a 0.4% increase from the previous quarter, and remain steady at 1.9% compared with the previous year.