U.S. Dollar Trading (USD) had a mixed day being sold against commodities and risk currencies such as the Aussie but remaining on the front foot against the Euro. Stock markets are continuing to rally and this is keeping risk appetite strong in Holiday trading. In US stocks, DJIA +15 points closing at 11533, S&P +7 points closing at 1254 and NASDAQ +6 points closing at 2667. Looking ahead, US Q3 GDP forecast at 2.8% vs. 2.5%. November Home Sales forecast at 4.7m vs. 4.4m previously.
The Euro (EUR) was able to stage a rally in Asia to test 1.3200 after China's VP Wang said they would take concrete action to support EU Debt. The market continued to sell rallies however and fell in the US session to fresh month lows under 1.3100. EUR/USD traded with a low of 1.3072 and a high of 1.3203 before closing at 1.3090.
The Japanese Yen (JPY) USD weakness let the Yen strengthen against the major in the Asian session but the losses were contained with support found at Y83.50 and the pair recovered to opening levels. AUD/JPY is continuing to grind higher. Overall the USDJPY traded with a low of 83.48 and a high of 83.98 before closing the day around 83.85 in the New York session.
The Sterling (GBP) was broadly linked with the Euro trading higher in Asian before reversing to fresh monthly lows. November UK Public borrowing increased to GBP22.8bn vs. 8.6BN previously. Concerns about the pace of the UK recovery remain and the 2011 outlook is very mixed. Overall the GBP/USD traded with a low of 1.5434 and a high of 1.5571 before closing the day at 1.5475 in the New York session.
The Australian Dollar (AUD) remained the top choice for risk taking investors trading up to test parity before consolidating just below. EUR/AUD and GBP/AUD continue to trend lower and are adding support. Overall the AUD/USD traded with a low of 0.9916 and a high of 0.9995 before closing the US session at 0.9965.
Oil & Gold (XAU) was subdued but well supported holding above $1380. Overall trading with a low of USD$1380 and high of USD $1392 before ending the New York session at USD$1389 an ounce. Grinded higher to the key $90 a barrel level. WTI Oil Closed +$0.50 at $89.90 a barrel.
|Currency||Sup 2||Sup 1||Spot||Res 1||Res 2|
Euro - 1.3120
Initial support at 1.3074 (Dec 21 low) followed by 1.3061 (Dec 2 low). Initial resistance is now located at 1.3382 (Dec 15 high) followed by 1.3499 (Dec 14 high)
Yen - 83.80
Initial support is located at 83.60 (Dec 15 high) followed by 82.84 (Dec 14 low). Initial resistance is now at 84.51 (Dec 15 high) followed by 85.40 (Sept 24 high).
Pound - 1.5470
Initial support at 1.5455 (Dec 17 Low) followed by 1.5346 (Sep 10 low). Initial resistance is now at 1.5775 (Dec 15 high) followed by 1.5911 (Dec 14 high).
Australian Dollar - 0.9965
Initial support at 0.9818 (Dec 21 low) followed by the 0.9863 (Dec 20 low). Initial resistance is now at 1.0031 (76.4% retrace of 1.0183-0.9537) followed by 1.0091 (Nov 11 high).
Gold - 1389
Initial support at 1374 (Dec 20 low) followed by 1361 (Nov 26 low). Initial resistance is now at 1397 (Dec 16 high) followed by 1408 (Dec 14 high).
Oil - 89.90
Initial support at 89.50 (Intraday Support) followed by 88.00 (Intraday Support). Initial resistance is now at 90.00 (Intraday Resistance) followed by 91.00 (Intraday Resistance).
Written by Anthony Darvall