U.S. Dollar Trading (USD) the Dollar was under pressure again last night as stock market's rallied around the world for a second day. Weekly Jobless Claims jumped to 436k vs. 407k previously but the market was focused on strong performance of European bonds and US home sales data. October Pending Home Sale jumped 10.4% m/m. In US stocks, DJIA +106 points closing at 11362, S&P +15 points closing at 1221 and NASDAQ +29 points closing at 2579. Looking ahead, November NonFarm Payrolls are forecast at 140k vs. 151k previously. The November Unemployment Rate forecast at 9.6% vs. 9.6% previously.
The Euro (EUR) was strong after talk in the market that the ECB was buying Portuguese bonds aggressively and the ECB announced it was delaying his exit from emergency liquidity after they held rates at 1.0%. EUR/USD traded with a low of 1.3059 and a high of 1.3249 before closing at 1.3206. Looking ahead, October Retail Sales are forecast at 0.2% vs. -0.2%.
The Japanese Yen (JPY) top out again and fell back below Y84 after the USD broadly weakened. Strong risk appetite helped the crosses to small gains however and the market will now wait for the US Nonfarm Payrolls tonight which usually produces a strong reaction on Yen crosses. Overall the USDJPY traded with a low of 83.47 and a high of 84.39 before closing the day around 83.80 in the New York session.
The Sterling (GBP) the cable resumed its aggressive volatility being sold hard at the start of the US session before bouncing with the risk on trading. EUR/GBP is recovering towards 0.8500. Overall the GBP/USD traded with a low of 1.5543 and a high of 1.5651 before closing the day at 1.5610 in the New York session. Looking ahead, November PMI Service 53 vs. 53.2.
The Australian Dollar (AUD) extended Wednesday's rally back above 0.9700 and developing a buoyant feeling as commodities and stocks rally. Economic data however is weakening with October Retail sales falling -1.1% vs. 0.3% forecast m/m. Overall the AUD/USD traded with a low of 0.9621 and a high of 0.9781 before closing the US session at 0.9760.
Oil & Gold (XAU) tested $1400 but failed and reversing sharply. Overall trading with a low of USD$1382 and high of USD $1399 before ending the New York session at USD$1389 an ounce. Oil traded higher towards the $88 up nearly $5 this week. WTI Oil Closed +$1.21 at $87.96 a barrel.
|Currency||Sup 2||Sup 1||Spot||Res 1||Res 2|
Euro - 1.3205
Initial support at 1.2969 (Nov 29 low) followed by 1.2830 (76.4% retracement of 1.2588-1.4282). Initial resistance is now located at 1.3354 (Nov 29 high) followed by 1.3634 (Nov 23 high)
Yen - 83.75
Initial support is located at 83.38 (Dec 1 low) followed by 82.79 (Nov 23 low). Initial resistance is now at 85.41 (Oct 5 high) followed by 85.40 (Sept 24 high).
Pound - 1.5580
Initial support at 1.5485 (Nov 29 Low) followed by 1.5297 (Sep 7 low). Initial resistance is now at 1.5648 (Nov 29 high) followed by 1.5773 (Nov 26 high).
Australian Dollar - 0.9755
Initial support at 0.9537 (Dec 1 low) followed by the 0.9477 (50% retrace of 0.8771-1.0183). Initial resistance is now at 0.9818 (Nov 26 high) followed by 0.9890 (Nov 23 high).
Gold - 1389
Initial support at 1362 (Nov 30 low) followed by 1351 (Nov 26 low). Initial resistance is now at 1410 (Nov 12 high) followed by 1424 (Nov 9 high).
Oil - 87.45
Initial support at 87.00 (Intraday Support) followed by 85.00 (Intraday Support). Initial resistance is now at 88.00 (Intraday Resistance) followed by 90.00 (Intraday Resistance).
Written by Anthony Darvall