U.S. Dollar Trading (USD) some weak earnings results from the closely watched Goldman Sachs sent the markets into a downside bias with commodities and stocks under pressure. December Housing Starts were at 529k vs. 550k expected and Building Permits at 635k vs. 555k forecast. In US stocks, DJIA -12 points closing at 11825, S&P -13 points closing at 1281 and NASDAQ -40 points closing at 2725. Looking ahead, December Housing Sales forecast at 4.85m vs. 4.68m previously. Weekly Jobless Claims are forecast at 420k vs. 445k.
The Euro (EUR) maintained lofty levels breaking briefly above 1.3500 but was unable to push higher and pulled back in the US session. The market continues to focus on the EFSF and whether there will be expansion or new facilities added to help stabilize the Debt situation. EUR/USD traded with a low of 1.3376 and a high of 1.3540 before closing at 1.3460. Looking ahead, December PPI is forecast at 0.4% vs. 0.2% previously.
The Japanese Yen (JPY) was strong against the USD as risk off trading and support broke at Y82.40. Support under Y82 was found however and the major was able to recover slightly into the close. The medium term outlook is still mixed with US economic data provide the biggest movement and direction. Overall the USDJPY traded with a low of 81.83 and a high of 82.71 before closing the day around 82.30 in the New York session.
The Sterling (GBP) orbited the 1.6000 level in light range trading with the market consolidating the recent rally. December Claimant Count was -4k vs. -1.2k previously and helped to support the pound as risk appetite waned. Overall the GBP/USD traded with a low of 1.5943 and a high of 1.6040 before closing the day at 1.5980 in the New York session. Looking ahead, January CBI Orders are forecast at -2 vs. -3 previously.
The Australian Dollar (AUD) was under a lot of pressure after staging an impressive rally for the first half of the day trading as high as the 1.0080 before reversing and ending below parity. AUD/JPY acted as a drag on the AUD/USD as did weak commodities. Overall the AUD/USD traded with a low of 0.9963 and a high of 1.0079 before closing the US session at 0.9980.
Oil & Gold (XAU) was subdued in a range testing $1380 resistance. Overall trading with a low of USD$1366 and high of USD $1380 before ending the New York session at USD$1370 an ounce. Oil fell back in the new contract month. WTI Oil Closed -$0.60 at $91.50 a barrel.
|Currency||Sup 2||Sup 1||Spot||Res 1||Res 2|
Euro - 1.3450
Initial support at 1.3369 (Jan 19 low) followed by 1.3245 (Jan 17 low). Initial resistance is now located at 1.3634 (Nov 23 high) followed by 1.3786 (Nov 22 high)
Yen - 82.15
Initial support is located at 81.89 (Jan 5 low) followed by 81.61 (Jan 4 low). Initial resistance is now at 83.15 (Jan 13 high) followed by 84.11 (Dec 20 high).
Pound - 1.5965
Initial support at 1.5878 (Jan 18 Low) followed by 1.5719 (Jan 13 low). Initial resistance is now at 1.6184 (Dec 12 high) followed by 1.6299 (Nov 4 High).
Australian Dollar - 0.9965
Initial support at 0.9863 (Jan 17 low) followed by the 0.9804 (Jan 12 low). Initial resistance is now at 1.0083 (61.8% retrace of 1.0256-0.9804) followed by 1.0173 (Jan 4 high).
Gold - 1372
Initial support at 1352 (Jan 7 low) followed by 1348 (Nov 22 low). Initial resistance is now at 1393 (Jan 13 high) followed by 1417 (Jan 4 high).
Oil - 91.50
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