The US dollar gained on most major currencies during the past trading week but fell against commodity currencies. The reason for that was optimism about Sino-US trade talks, which led to risk appetite on markets.
While no specific details were revealed, the United States and China released statements, claiming that progress has been made and announcing a meeting in Washington next week. That was a good news for the dollar. The greenback also got boost from the fact that the USA managed to avoid another government shutdown. As for the negative factors, the US currency got hit by the retail sales report that showed the biggest monthly drop since September 2009.
Risk appetite caused by the news about US-China trade negotiations bolstered riskier commodity-geared currencies. The New Zealand dollar was especially strong thanks to the monetary policy statement from the Reserve Bank of New Zealand, which showed that the central bank does not plan to cut interest rates in the near future.
EUR/USD declined from 1.1321 to 1.1291, touching the low of 1.1234 during the week. USD/JPY advanced from 109.76 to 110.43, and its weekly high was at 111.13. Meanwhile, NZD/USD jumped from 0.6740 to 0.6863.
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US Dollar Gains on Major Rivals, Retreats vs. Commodity Currencies
