Another pair that was highly volatile last week was AUD/USD, which penetrated a strong resistance at 0.95 and already trading more than 160 pips above it. Amid concerns QE tapering will be delayed and comments from the Reserve Bank of Australia they could return to a tightening bias in November of 2014 pushed the pair to its highest level since June. By the way, Aussie together with the kiwi and Swedish Krona were the biggest gainers last week, advancing 0.78%, 1.31% and 0.54%, respectively.
The cable also performed a rally of more than 300 pips after a U.S. budget deal; however, the Pound itself was little changed (-0.01%) against other currencies over the week. In the meantime, GBP/USD is trading around weekly resistance, and in case we would receive another bunch of better-then-expected data from the U.K., the pair may advance to a strong psychological level of 1.63. On Thursday, October 23 will be released MPC Official Bank Rate Votes, while on Friday the Office for National Statistics will publish GDP data. Taking into account latest figures, we can expect hawkish comments from BoE members as well as stronger-than-expected growth figures, which would send the cable to the north, suggesting bulls may hit 1.63 this week.
Amid other crucial fundamental data this week, it is important to mention U.S. unemployment rate and non-farm payrolls on Tuesday, reports which were postponed several times and which could shed the light on the key labour market, however, taking into account 16-day long government shutdown, figures may be disappointing. The single currency is likely to move higher on Thursday and Friday, where both manufacturing data from Eurozone as well as German business climate would support the case the 17-nation bloc is finally recovering.