The Greek financial tragedy continues, with Eurozone peripheral debt spreads widening and putting pressure on the Euro even as U.S. fundamental data disappointed. Risk aversion wasn’t helped with U.S. consumer credit warnings from JP Morgan and Citigroup in their earnings reports, and falling commodities prices, particularly gold and crude oil, dampened commodities exporters.

The Australian economy added 35.2K jobs in December and the unemployment rate decreased to 5.5%, with job advertisements rising 6.0% m/m. November value of loans shrank −2.9% m/m, with home loans contracting −5.6% but investment lending increasing 2.1%. AUD/USD tested resistance at 0.9330 twice in the week but remained bound beneath it, closing at 0.9234. Pressure appears to be building to the upside.

U.S. December advance retail sales shrank −0.3% m/m, −0.2% ex-autos, and −0.3% ex-autos and petrol, as CPI printed 0.1% m/m, 2.7% y/y, and 1.8% y/y core. Early January weekly jobless claims eased higher at 444K claims, the November trade deficit widened to US$36.4Bn, while December import prices were flat and December industrial production improved 0.6% m/m.

The ECB left rates at 1.0%, as expected, and ECB President Trichet bluntly ordered member nations to get their finances in order. December CPI printed in line with expectations at 0.3% m/m, 0.9% y/y, and core 1.1% y/y. November industrial production improved 1.0% m/m, but remains down −7.1% y/y, and the trade surplus narrowed to €3.9Bn s.a. EUR/USD could not early week gains as high as 1.4579, consolidating midweek and closing at 1.4379.

The U.K. NIESR December GDP estimate printed 0.3% growth with BRC retail sales rising 4.2% m/m. November industrial production improved 0.4% m/m, −6.0% y/y, with manufacturing production flat m/m, −5.4% y/y, and the visible trade deficit narrowed more than expected to £6.784Bn. GBP/USD surged 1.3% in the week on BoE member comments that it was time to pause and assess the results of the QE programme, rising as high as 1.6355 before closing at 1.6257. EUR/GBP lost 1.5%, with EUR debt concerns contributing, but the fall was contained by long-term support at 0.8825 and the currency pair closed at 0.8842.

Canada’s December housing starts rose to 174.5K although building permits declined −4.6% m/m. The November trade balance registered an unexpected deficit of CA$0.3Bn. USD/CAD traded both sides of 1.0300, falling to a multi-month low of 1.0223 before closing at 1.0294. AUD/CAD respected its bearish trendline, set 9 November 2009, and settled to close at 0.9505.

New Zealand’s 4Q2009 NZIER business opinion survey declined to 31.0 from 36.0 previous. NZD/USD could not force through resistance at 0.7440, closing at 0.7380. AUD/NZD pivoted about its MA-200 on daily charts, closing at 1.2503.

Japan’s December EcoWatcher survey improved to 35.4 current, 36.3 outlook. December corporate goods price index printed 0.1% m/m, −3.9% y/y, and the November trade balance narrowed to ¥490.6Bn with the current account printing ¥1103.0Bn, as machine orders decreased −11.3% m/m, −20.5% y/y. The yen was the big winner in the week on risk aversion, recording gains of 2.0% versus USD (closed at 90.82), 2.0% versus AUD (closed at 84.20), and 2.2% versus EUR (closed at 130.59). All three are near strong support levels.