USD continues to soar

USDCHF and AUDUSD are the week's largest movers: Chart

Charts (4)

The S&P 500 closed down 0.63% last week, pressured by the Energy (-8.6%), Automobiles & Components (-7.11%) and Banks (-6.16%) sectors.  

Here is a review of key economic data over the past week: 

Durable Goods Orders rose 0.4% on month in the August preliminary reading (+1.5% expected), compared to a revised +11.7% in the July final reading. 

Initial Jobless Claims unexpectedly rose to 870K for the week ending September 19th (840K expected), from a revised 866K in the previous week. Continuing Claims declined to 12,580K for the week ending September 12th (12,275K expected), from a revised 12,747K in the week before.

New Home Sales spiked to 1,011K on month in August (890K expected), from a revised 965K in July, a level last reached in late 2006. The Mortgage Bankers Association's Mortgage Applications rose 6.8% for the week ending September 18th, compared to -2.5% in the week prior. Existing Home Sales rose to 6.00 million on month in August (as expected), from 5.86 million in July, a level last reached in late 2006.

Markit's US Manufacturing Purchasing Managers' Index increased to 53.5 on month in the September preliminary reading (as expected), from 53.1 in the August final reading. 

The USD/CHF was the week's biggest gainer after climbing 1.93% WoW. The AUD/USD was the biggest laggard on the week declining 3.58% 

Looking at the USD/CHF, The rebound continues. 0.9185 remains key support. Look for a continuation higher towards targets of 0.9375 and 0.9515 in extension.

Source: GAIN Capital, TradingView

Regarding the AUD/USD, the pair is challenging 0.7025 support after breaking below its 50-day moving average. A break below support may accelerate a decline towards 0.6775.

Source: GAIN Capital, TradingView

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