CURRENCY TRADING SUMMARY - 23rd October (00:30GMT)
U.S. Dollar Trading (USD) gained during the day as hedge fund sales of long NZD, AUD positions helped the Dollar. A sharp reversal in US stocks put the USD on the back foot with the EURO regaining the 1.5000 level. Weekly Jobless Claims at 531k vs. 515k previously. In US Stocks, DJIA +131 points closing at 10081, S&P +11 points closing at 1092 and NASDAQ +14 points closing at 2165. Looking ahead, September Existing Home Sales forecast at 5.35mln vs. 5.1mln previously.
The Euro (EUR) fell as Asian and European stocks suffered heavy losses but was always supported. 1.4950 contained the losses and the pair regains the 1.5000 level with the rise in US stocks. August Current Account was -5bn vs. 9.3bn previously. Overall the EUR/USD traded with a low of 1.4942 and a high of 1.5040 before closing at 1.5010. Looking ahead, October IFO Business Climate forecast at 92 vs. 91.3 previously.
The Japanese Yen (JPY) traded at month highs as the pair turned more and more positive with USD/JPY testing 91.60. EUR/JPY traded above 137 Yen and GBP/JPY recovered from a sell off in Europe. September Trade Balance was at 530bn vs. 630bn previously. Overall the USDJPY traded with a low of 90.87 and a high of 91.71 before closing the day around 91.30 in the New York session.
The Sterling (GBP) came under pressure as more talked of QE expansion spooked the market and September retails sales were flat vs. +0.5% forecast. The rise in US sales let the market resume tracking higher and the pair finished just under month highs. Overall the GBP/USD traded with a low of 1.6488 and a high of 1.6638 before closing the day at 1.6610 in the New York session. Looking ahead, Q3 GDP forecast at 0.2% vs. -0.6%.
The Australian Dollar (AUD) fell heavily from 0.9300 to 0.9200 as stock losses added a bit of risk aversion in the European market but the 0.9180 level held firm and the pair finished the US session on the front foot. Overall the AUD/USD traded with a low of 0.9186 and a high of 0.9299 before closing the US session at 0.9280.
Oil & Gold (XAU) quiet movements dipping and then recovering with US stocks. Overall trading with a low of USD$1051 and high of USD$1061 before ending the New York session at USD$1060 an ounce. Oil consolidated the gains from Wednesday. Crude Oil was down -0.32 ending the New York session at $81.05.
|Currency||Sup 2||Sup 1||Spot||Res 1||Res 2|
Euro - 1.5035
Initial support at 1.4829 (Oct 19 low) followed by 1.4762 (Oct 13 low). Initial resistance is now located at 1.5046 (Oct 21 high) followed by 1.5083 (August 11 2008 high)
Yen - 91.30
Initial support is located at 89.28 (Oct 15 low) followed by 88.84 (Oct 14 low). Initial resistance is now at 91.71 (Oct 22 high) followed by 92.53 (Sept 21 high).
Pound - 1.6620
Initial support at 1.6329 (Oct 19 low) followed by 1.6241 (Sept 19 low). Initial resistance is now at 1.6658 (Sept 15 high) followed by 1.6742 (Sept 11 high).
Australian Dollar - 0.9280
Initial support at 0.9113 (Oct 19 low) followed by the 0.8985 (Oct 12 low). Initial resistance is now at 0.9347 (Aug 4 08 high) followed by 0.9476 (Jul 31 08 high).
Gold - 1060
Initial support at 1048 (Oct 21 low) followed by 1043 (Oct 16 low). Initial resistance is now at 1067 (Oct 20 high) followed by 1070 (Oct 14 high).
Oil - 81.20
Initial support at 80 (key level) followed by 79.50 (Previous Resistance). Initial resistance is now at 82 (Oct 21 high) followed by 82.50 (Fib Projection).