USD continued to lose ground this forex trading week, as cautious optimism sought risk and rewards, pushing select commodities and equities ever higher. Gold set another historic record at $1070.45, crude oil topped $77/bbl.

Australia’s September NAB business confidence fell slightly to 14, business conditions to 3, while October consumer confidence improved 1.7% m/m. October inflation expectations remain at 3.5%. AUD/USD gained 1.5% on rate differential expectations, respecting its regression channel and closing at 0.9171.

U.S. September advance retail sales fell −1.5% m/m, less than markets anticipated, with sales ex-autos positive at 0.5%, sales ex-autos and petrol 0.4%. September CPI printed 0.2% m/m, −1.3% y/y, with core 0.2% m/m, 1.5% y/y. September import prices are down −12.0% y/y, initial jobless claims printed better than market expectations, September industrial production rose 0.7% m/m, and the Empire manufacturing survey surged; but the Philly survey, and both weekly and monthly consumer confidence surveys, all fell.

Eurozone’s September CPI printed flat m/m, −0.3% y/y, with core 1.2% y/y. August trade surplus narrowed sharply to €1.0Bn s.a., a deficit of €4.0Bn without the adjustment, and industrial production rose 0.9% m/m, improving to −15.4% y/y. October ZEW survey surprised to the downside, with economic sentiment declining to 56.9; in Germany, economic sentiment fell to 56.0, and current situation improved slightly to −72.2. EUR/USD gained 1.1%, nearing strong resistance at 1.5000 before closing at 1.4893, the potential double-top formation fading away.

U.K. September jobless claims increased 20.8K but the rate held steady at 5.0%, the ILO rate at 7.9%. September CPI printed flat m/m, 1.1% y/y, as BRC retail sales monitor rose 4.9% and RICS house price balance improved to 22%. The pound sterling roared on improved data. GBP/USD gained 3.1%, or 650 pips, smashing resistance levels before closing at 1.6353. GBP gained 2.1% against EUR, taking out a strong option barrier as it fell to close at 0.9104.

Canada’s September CPI printed flat m/m, −0.9% y/y, with core rising 0.3% m/m, 1.5% y/y. August manufacturing shipments fell −2.1% m/m. USD/CAD sank within a three-week standard deviation channel but respected support at 1.0205, rebounding to resistance at 1.0421 before closing at 1.0379. AUD/CAD consolidated gains, rolling between 0.9345 and 0.9545, closing at 0.9518.

New Zealand’s 3Q2009 CPI printed 1.3% q/q, 1.7% y/y, with food prices −0.7% m/m. August retail sales jumped 1.1% m/m, 1.2% ex-autos, and September REINZ housing sales rose 43.7% y/y. September manufacturing PMI beat the break-even 50 with 51.7. NZD/USD set a new 2009 high at 0.7494 before closing at 0.7390, with gains increasingly volatile. AUD/NZD broke and closed above its deviation channel, perhaps signalling a bottom although it could not force through resistance at 1.2425, closing at 1.2400.

The BoJ left rates at 0.10% with no increase in QE measures. September corporate goods price index rose 0.1% m/m but remains down −7.9% y/y, and the final estimate of August industrial production was revised down to 1.6% m/m from 1.8% previous, −19.0% y/y from −18.7%. The end of corporate repatriation flows pushed USD/JPY 1.2% higher, breaking and closing above its 2.5-month downtrend line but staying within its six-month deviation channel as it closed at 90.86. EUR/JPY and AUD/JPY both surged higher, gaining 2.4% and 2.9% respectively and closing at 135.33 and 83.33.