Weekly Trading Forecast: FX Volatility Shifts Focus from ECB to RBNZ, BoE and Fed
A lot has changed for the Dollar this past week.
The Australian Dollar peaked over the October 12th high on Friday.
NZD/USD may continue to retrace the decline from the October high (0.6896) as subdued wage growth in the world’s largest economy drags on the Fed outlook, but the outcome of the Reserve Bank of New Zealand’s (RBNZ) December 10 policy meeting may drag on the exchange rate should Governor Graeme Wheeler and Co. show a greater willingness to further embark on its easing cycle in 2016.
The Chinese Yuan Offshore Exchange Rate (USD/CNH) saw little volatility despite a much larger breakdown in the US Dollar, and traders were reminded that CNH remains closely correlated to the onshore Yuan exchange rate (USD/CNY).
Gold prices snapped a six-week losing streak on Friday with the precious metal rallying 2.55% to trade at 1084 ahead of the New York close.
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