The Japanese Yen had a tough start to the week, following worse-than-expected trade balance figures, but levelled off later in the week with worries surrounding emerging market economies boosting investment into the safe-haven currency.
The South African Rand also weakened significantly throughout the week, affected by weak Chinese manufacturing data – China is one of its main trading partners – coinciding with investor concern that US tapering will hamper the growth of emerging markets. The Indian Rupee saw its most significant boost against the sterling for two months after the Reserve Bank of India unexpectedly put up interest rates.
Yesterday we had declining Australian import prices, with the HSBC China Manufacturing Purchasing Managers’ Index also dropping to its lowest figure in six months (49.5). We saw increases, however in terms of New Zealand building permits and Japan retail sales. Today we have Producer Price Index data – a measure of inflation – out of Australia, along with Canadian growth figures.
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