U.S. Dollar Trading (USD) was under pressure as the Euro found support and Oil surged higher on supply fears. Stocks were strong on solid earnings reports and risk was tentatively put back on. In US stocks, DJIA +34 points closing at 11637, S&P +4 points closing at 1275 and NASDAQ +9 points closing at 2716. Looking ahead, Weekly Crude Oil Inventories are forecast at 0.4m vs. -4.2mn previously.
The Euro (EUR) was boosted in Asia on news that Japan will be heavily involved in buying European debt to try and instill confidence in the Eurozone. Debt Yields fell and upcoming Debt Auctions this week will be closely watched for demand. EUR/USD traded with a low of 1.2903 and a high of 1.2995 before closing at 1.2985. Looking ahead, November Industrial Production is forecast at 0.5% vs. 0.7% previously.
The Japanese Yen (JPY) USD/JPY found support from moves higher in EUR/JPY but the market was capped by heavy AUD/JPY selling. The major is very range bound with a break of Y81 or Y85 needed to suggest fresh direction. Overall the USDJPY traded with a low of 82.70 and a high of 83.51 before closing the day around 83.25 in the New York session.
The Sterling (GBP) found support on dips to be bought up above 1.5600 and GBP/JPY reclaimed the key Y130 level. EUR/GBP was stable as the Euro recovered from recent selling and the Japan news also helped GBP sentiment. Overall the GBP/USD traded with a low of 1.5510 and a high of 1.5643 before closing the day at 1.5630 in the New York session. Looking ahead, November Trade Balance forecast at -8.3bn vs. -8.5bn previously.
The Australian Dollar (AUD) was under heavy selling pressure for most of the day as the Flood crisis worsened and the nation's third largest city became to flood. With Billions of dollars damage and flood waters rising the market could still continue to sell the commodity currency. Overall the AUD/USD traded with a low of 0.9803 and a high of 0.9952 before closing the US session at 0.9850.
Oil & Gold (XAU) grinded higher as the Dollar weakened and demand for the alternate currency remained strong. Overall trading with a low of USD$1372 and high of USD $1387 before ending the New York session at USD$1383 an ounce. Crude Oil surged higher as the Alaskan Pipeline remained closed and Gulf of Mexico platforms we also taken offline. WTI Oil Closed +$1.97 at $91.20 a barrel.
|Currency||Sup 2||Sup 1||Spot||Res 1||Res 2|
Euro - 1.3005
Initial support at 1.2867 (Jan 10 low) followed by 1.2796 (61.8% retrace of 1.1877-1.4282). Initial resistance is now located at 1.3021 (Jan 6 high) followed by 1.3325 (Jan 5 high)
Yen - 83.20
Initial support is located at 82.88 (Jan 6 low) followed by 81.89 (Jan 5 low). Initial resistance is now at 83.68 (Jan 7 high) followed by 84.11 (Dec 20 high).
Pound - 1.5635
Initial support at 1.5407 (Jan 7 Low) followed by 1.5367 (Dec 30 low). Initial resistance is now at 1.5665 (Dec 31 high) followed by 1.5695 (61.8% retrace of 1.5911-1.5345).
Australian Dollar - 0.9860
Initial support at 0.9812 (61.8% retrace of 0.9537-1.0256) followed by the 0.9753 (Dec 8 low). Initial resistance is now at 0.9983 (Jan 10 high) followed by 1.0015 (Jan 6 high).
Gold - 1384
Initial support at 1365 (Jan 10 low low) followed by 1352 (Jan 7 low). Initial resistance is now at 1396 (61.8% retrace of 1352.70-1424.05) followed by 1417 (Jan 4 High).
Oil - 91.20
Initial support at 90.00 (Intraday Support) followed by 89.00 (Intraday Support). Initial resistance is now at 91.50 (Intraday Resistance) followed by 92.50 (Intraday Resistance).
Written by Anthony Darvall