AUD/USD tested 0.7200 for fresh cycle lows as selling continued into the year end. AUD/JPY selling and EUR/AUD buying the main catalyst. Concern about the Australian economy in 2017 is intensifying.
US Stocks fell back slightly for a 2nd day as 20000 proved too big a barrier into Christmas. Still the longer we linger within testing range the more likely we will move higher in coming days as the trend is firmly higher.
We finish the week with some US economic data with Unemployment claims and Durable Goods Orders. Also November personal spending data and the PCE price index will give some update on inflation which is expected to be a big theme in 2017.
EUR/USD tested 1.0500 before reversing sharply in a disappointing end to the relief rally for the bulls out there. Downside 1.0350 is now in view and a break would open the door to the big parity target at 1.000 in coming weeks.
