U.S. Dollar Trading (USD) in a big data day the Dollar was under heavy pressure as the Euro dragged all pairs higher against the world's number one reserve currency. Weekly jobless Claims jumped to 445k vs. 405k forecast and prompted profit taking on equities. In US stocks, DJIA -23 points closing at 11731, S&P -2 points closing at 1283 and NASDAQ -2 points closing at 2735. Looking ahead, December Retail Sale sales are forecast at 0.8% vs. 0.8% previously. January UoM Consumer Confidence is forecast at 75.4 vs. 74.5 previously.
The Euro (EUR) the Euro was the major mover overnight as the ECB held rates at 1.0% and President Trichet was upbeat. Successful Bond Auctions for both Spanish and Italian Debt sent shorts scuttling and the EUR/USD moved above 1.3300. EUR/USD traded with a low of 1.3088 and a high of 1.3385 before closing at 1.3340. Looking ahead, December CPI forecast at 0.6% vs. 0.1% previously.
The Japanese Yen (JPY) was slightly stronger against the beleaguered USD but most crosses rallied as EUR/JPY soared. Overall the USDJPY traded with a low of 82.53 and a high of 83.17 before closing the day around 82.80 in the New York session.
The Sterling (GBP) the Bank of England kept the interest rates at 0.5% and the QE unchanged allowing Cable to rally in sympathy with the Euro. November Industrial Production up 0.4% vs. 0.5%. Overall the GBP/USD traded with a low of 1.5716 and a high of 1.5887 before closing the day at 1.5825 in the New York session. Looking ahead, December PPI forecast at 0.4% vs. 0.3%.
The Australian Dollar (AUD) continued to rally with weakness in the USD allowing a test above parity before a pullback into the US close. EUR/AUD has begun to unwind heavy short positions after months of selling. Overall the AUD/USD traded with a low of 0.9914 and a high of 1.0022 before closing the US session at 0.9970.
Oil & Gold (XAU) fell sharply as the European sovereign debt issue calmed down. Overall trading with a low of USD$1369 and high of USD $1393 before ending the New York session at USD$1375 an ounce. Profit takers emerged after Crude Oil failed to hold above the $92 a barrel level. WTI Oil Closed -$0.78 at $91.08 a barrel.
|Currency||Sup 2||Sup 1||Spot||Res 1||Res 2|
Euro - 1.3340
Initial support at 1.2962 (Jan 12 low) followed by 1.2905 (Jan 11 low). Initial resistance is now located at 1.3433 (Jan 4 high) followed by 1.3500 (Big Figure)
Yen - 82.60
Initial support is located at 81.89 (Jan 5 low) followed by 81.61 (Jan 4 low). Initial resistance is now at 83.68 (Jan 7 high) followed by 84.11 (Dec 20 high).
Pound - 1.5830
Initial support at 1.5598 (Jan 12 Low) followed by 1.5513 (Dec 30 low). Initial resistance is now at 1.5911 (Dec 14 high) followed by 1.5965 (Dec 23 high).
Australian Dollar - 0.9970
Initial support at 0.9804 (Jan 12 low) followed by the 0.9753 (Dec 8 low). Initial resistance is now at 1.0000 (Big Figure) followed by 1.0076 (Jan 5 high).
Gold - 1377
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 - 91.10
Initial support at 90.00 (Intraday Support) followed by 89.00 (Intraday Support). Initial resistance is now at 92.50 (Intraday Resistance) followed by 95.00 (Intraday Resistance).
Written by Anthony Darvall