U.S. Dollar Trading (USD) was extremely volatile from the start with stocks falling aggressively in Asia and the Europe before the sentiment reversed aggressively for the final part of the day. CB Consumer Confidence jumped to 63 vs 57 previously shrugging off recent stock market declines. In US stocks, DJIA -22 points closing at 10043, S&P +1 points closing at 1074 and NASDAQ -2.6 points closing at 2210. Looking ahead, April Durable Goods Orders +1.3% vs. -1.2% previously. April New Home Sales are forecast at 0.43mln vs. 0.41mln previously.

The Euro (EUR) hit week lows on massive selling in Europe to push below 1.2200 before reversing aggressively with the change of sentiment in the US. March Industrial Orders jumped 5.2% vs. 2% forecast. EUR/JPY broke below Y110 and hit fresh year lows under Y108. EUR/USD traded with a low of 1.2176 and a high of 1.2389 before closing at 1.2290. Looking ahead, June GFK index forecast at 3.6% vs 3.8% previously.

The Japanese Yen (JPY) was very strong early in the day as the crosses fell and the USD/JPY was dragged down below Y90 before ending near resistance at 90.40. EUR/GBP and GBP/JPY were big movers on the crosses each trading in 4 Yen ranges. Overall the USDJPY traded with a low of 89.24 and a high of 90.51 before closing the day around 90.30 in the New York session.

The Sterling (GBP) came under pressure as GBP/JPY sales pushed cable under 1.4300 unable to benefit from the revised higher GDP figures. Q1 GDP rose to 0.3% vs. 0.2% previously. EUR/GBP was stuck inside a tight range between 0.8500-0.8600 as the market awaits fresh direction. Overall the GBP/USD traded with a low of 1.4257 and a high of 1.4451 before closing the day at 1.4410 in the New York session.

The Australian Dollar (AUD) is beholden to the changes in risk appetite with year lows under 0.8100 tested before the major rebound in the US session sent the commodity currency straight back up to retest 0.8300. AUD/NZD in a holding lower range between 1.22 and 1.24 as the AUD collapse consolidates. Overall the AUD/USD traded with a low of 0.8064 and a high of 0.8309 before closing the US session at 0.8265.

Oil & Gold (XAU) Broke through $1200 as buyers returned in force. Overall trading with a low of USD$1185 and high of USD$1204 before ending the New York session at USD$1203 an ounce. Tested below $68 in the US session but finished with a sharp rally to test $70. WTI Oil Closed -$0.50 at $69.70 a barrel.

TECHNICAL COMMENTARY

       

Currency

Sup 2

Sup 1

Spot

Res 1

Res 2

EUR/USD

1.2135

1.2144

1.2300

1.2587

1.2747

USD/JPY

87.95

88.97

90.10

91.88

92.97

GBP/USD

1.4111

1.4231

1.4370

1.4517

1.4918

AUD/USD

0.7828

0.8000

0.8215

0.8499

0.8725

XAU/USD

1146.00

1166

1203

1229

1250.00

OIL/USD

68.00

69.50

69.60

70.00

72.50

Euro - 1.2300

Initial support at 1.2144 (May 19 low) followed by 1.2135 (0.50 of 0.8232-1.6039). Initial resistance is now located at 1.2587 (May 24 high) followed by 1.2747 (May 12 high)

Yen - 90.10

Initial support is located at 88.97 (May 20 low) followed by 87.95 (May 6 low). Initial resistance is now at 91.88 (May 20 low) followed by 92.97 (May 18 high).

Pound - 1.4370

Initial support at 1.4231 (Mary 20 low) followed by 1.38 (March 18 2009 low). Initial resistance is now at 1.4517 (May 18 High) followed by 1.4918 (May 13 low).

Australian Dollar - 0.8215

Initial support at 0.8000 (Big Figure) followed by the 0.7828 ( 2009 low). Initial resistance is now at 0. 8499 (May 18 low) followed by 0.8725 (May 19 high).

Gold - 1203

Initial support at 1166 (May 21 low) followed by 1146 (April 27 low). Initial resistance is now at 1229 (Key level) followed by 1250 (1123.90 plus 1.618 of 1085.3-1170.1).

Oil - 69.60

Initial support at 69.50 (Intraday Support) followed by 68.00 (Intraday Support). Initial resistance is now at 71.00 (March high) followed by 72.50 (Intraday Resistance).