"The USA dollar index was drifting lower for much of the day yesterday, but the move was compounded by the release of disappointing United States retail sales data", Kymberly Martin, a senior market strategist at the Bank of New Zealand, said. The weaker dollar has also helped rally oil prices in recent weeks while bets on a pick-up in demand for the commodity provided further uplift. European shares snapped a three-day slide on the prospects of more central bank support. In the week ahead, investors will be looking to Wednesday's USA data on retail sales and Thursday's data on consumer prices for fresh indications on the strength of consumer spending. Germany's DAX, however, added 0.2 percent thanks largely to utilities RWE and EON, which rose 11 percent and 7 percent respectively after a government review concluded they had put aside enough money to decommission their nuclear plants. The Australian dollar slipped 0.3 percent to $0.7211, taking it further away from Monday's two-month peak of $0.7382. MSCI's broadest index of Asia-Pacific shares outside Japan.MIAPJ0000PUS was down 0.3 percent, while Japan's Nikkei stock index.N225 shed 1.1 percent. The greenback rose more than one percent against the ringgit Monday, while it was up 0.10 percent against the rupiah and 0.08 percent against the Australian dollar. Imports, however, tumbled 20.4 per cent. The weakening economy prompted China's central bank on Monday to expand a scheme that increases banks' ability to lend, lifting mainland Chinese shares to seven-week highs. The Japanese yen is trading at 119.05 against the weak USA dollar while against the euro the yen is exchanging at 136.58. "A clouded outlook for China can used as an argument by the Fed to postpone a rate hike". Asian shares hit their highest levels since mid-August, also hoping for stimulus from China and Japan. Earlier China's price data showed annual consumer inflation growth slowed to 1.6 percent in September, below a forecast 1.8 percent rise and 2.0 percent increase in August. Fed Governor Daniel Tarullo told the CNBC television channel that he doesn't now favor raising interest rates in 2015, after fellow Governor Lael Brainard made the case this week for patience. Lien said the economy could regain momentum in November or December but it would have to be a significant step-up to alter market expectations of a hike. The metal last traded at US$1,167 an ounce. U.S. West Texas Intermediate crude futures were trading at $49.79 per barrel, up 16 cents from their last settlement. It gained 4 percent last week, its biggest weekly gain since late 2011. The Singapore dollar also rose 0.5 percent, to around 1.3950 to the USA dollar after the country's central bank eased its monetary policy only slightly, less than a few players had expected. Bills Insider http://billsinsider.com/2015/10/16/444-dollar-slips-on-signs-of-weakening-global-economy/

Source