USD Slips, Strong demand for Spanish Bonds.
U.S. Dollar Trading (USD) lost considerable ground against a number of currencies as data disappointed on Thursday. The Philly Fed Manufacturing index was well below forecasts of 21.1 to read at 8.0. In other data news, weekly jobless claims rose by 12K to 472K. Core CPI also rose to 0.1% over the month pushing the yearly target up to 0.9%. US Share markets posted small gains with the NASDAQ up 1 point, the DJIA up 25 points (0.2%) and the S&P500 ups 0.1%, all in late session buying.
The Euro (EUR) rallied as European shares were buoyant for the seventh consecutive session. Positive sentiment was pronounced following strong demand for both 10yr and 30yr Spanish Bonds, totaling €3.5 Billion, doused debt concerns seen the previous session. The EURUSD traded with a high of 1.2413 and a low of 1.2242. Little data out of the Euro zone to end the week with only German PPI worthy of noting, forecasts lie at 0.2% versus previous 0.8%
The Japanese Yen (JPY) was also able to take full advantage of a weakening greenback. The Dollar Yen continued to trade within its range seeing a low of 90.51 and a high of 90.41. Looking ahead, BoJ monetary policy minutes are scheduled for release following the Tuesday meeting where rates were unanimously kept on hold and with the press conference mentioning the state of the economy was gradually improving.
The Sterling (GBP) rebounded strongly overnight, echoed by a strong rebound in UK Retail Sales rising to 0.6%, well above forecasted 0.1%. The FTSE was also able to gain a modest 0.3% adding to investor confidence, The GBPUSD traded with a low of 1.4645 before rebounding aggressively to trade at a high of 1.4835.
The Australian Dollar (AUD) once again found stiff resistance near the 0.8670-90 range for the fourth time this week. But it was not all clear sailing of the currency succumbing to weak sentiment early on during the European session as, prompting a weaker AUDJPY. Copper prices also fell by 0.3% during the London session which added to the Aussie Dollar woes. The AUDUSD traded with a low of 0.8583 before rebounding to a high of 0.8690
Oil & Gold (XAU) XAU was best performed on the weaker dollar, trading near all time highs following a slate of weak US economic data readings, despite a rebound in investor confidence overnight. XAU rebounded by US$18.20 an ounce to close at US$1,248.70, having earlier traded at high of US$1,251.40. Oil fell from Six week highs on Thursday, as weakened US data attributed to clouded outlook on sustainable growth in the world largest economy. Crude Oil fell by US$0.88 to trade at US$76.79
Euro - 1.2380
Initial support at 1.2168 (June 15 low) followed by 1.2045 (Jun 11 low). Initial resistance is now located at 1.2453 (May 28 high) followed by 1.2672 (May 21 high)
Yen - 90.85
Initial support is located at 90.51 (June 8 low) followed by 89.81 (May 27 low). Initial resistance is now at 92.12 (June 14 high) followed by 92.97 (May 18 high).
Pound - 1.4810
Initial support at 1.4505 (June 11 low) followed by 1.4347 (June 8 low). Initial resistance is now at 1.4856 (June 16 High) followed by 1.4918 (May 13 high).
Australian Dollar - 0.8660
Initial support at 0.8506 (June 15 low) followed by the 0.8427 (June 11 low). Initial resistance is now at 0.8728 (50% retracement 0.9388 - 0.8068) followed by 0.8865 (May 17 high).
Gold - 1247.20
Initial support at 1210.65 (June 7 low) followed by 1197.05 (June 4 low). Initial resistance is now at 1252.05 (June 8 High) followed by 1300 (Psychological Round number).
Oil - 73.36
Initial support at 76.04 (Intraday Support) followed by 75.30 (Intraday Support). Initial resistance is now at 77.66 (Intraday) followed by 78.54 (Intraday).