Over the week, the Australian dollar pushed to 18-year highs against the US dollar with levels above the 0.8475 level as confidence remained strong.
There was little in the way of domestic economic data to give market direction during the week, but survey evidence remained generally firm.
There were further yield-related capital flows into the Australian dollar which underpinned the currency and sentiment towards the currency remained robust.
Australian dollar confidence will remain strong in the short-term, but it remains vulnerable to a sharp correction on global market stresses with volatility liable to increase.
Canadian dollar
The Canadian dollar hit resistance close to 1.06 against the US dollar before weakening back to lows around 1.0750 on weaker economic data.
Headline consumer prices rose 0.4% in May while there was a 0.3% core increase. This cut the annual core increase to 2.5% from 2.5% reflecting the strong price increases last year.
The wholesale sales data was weaker than expected with a 3.1% decline for May while the increase in retail sales was held to 0.4% with underlying sales unchanged over the month.
The Canadian currency was supported by a rise in oil prices during the week and markets were still looking for a July Bank of Canada interest rate increase.
Overall, the Canadian dollar should retain a firm short-term tone on expectations of higher interest rates, although consolidation is still likely to dominate.
Indian rupee
The rupee has secured a firm tone over the past week, but trading ranges have been generally narrow with the rupee settling close to 40.75 against the dollar on Friday.
There have been further capital inflows into Indian markets and there has also been a demand for funds ahead of the ICICI Bank IPO offering.
The rupee has been constrained by persistent central bank intervention to curb currency appreciation with the bank opposing gains through the 40.50 level.
High oil prices have also undermined the rupee while there has been speculation over additional credit controls to curb speculative capital inflows.
The rupee should remain firm in the short-term, but capital inflows are liable to be more cautions with the potential for at least a small correction weaker and the possibility of a larger correction.