U.S. Dollar Trading (USD) was mixed enjoying strong gains against the Euro but fairly unchanged against other pairs. Weekly Jobless Claims were strong at 415k vs. 454k previously. Also Strong ISM Services Survey improved to 59.4 vs. 57.1 previously. In US stocks, DJIA +20 points closing at 12062, S&P +3 points closing at 1307 and NASDAQ +4 points closing at 2753. Looking ahead, January Non Farm Payrolls forecast at 145k vs. 103k previously.
The Euro (EUR) the Euro dropped 2 cents after the ECB held at 1.0% and Trichet failed to deliver the hawkish comments priced in by traders. Trichet reiterated 'risks the medium term outlook are still broadly balanced' and did not focus on inflations concerns some hoped he would. EUR/USD traded with a low of 1.3609 and a high of 1.3827 before closing at 1.3630. Looking ahead, ECB President Trichet Speaks.
The Japanese Yen (JPY) tested Y82 after the good weekly jobless claims from the US but the market once again sold into the rally to push the major back to opening levels. Overall the USDJPY traded with a low of 81.39 and a high of 82.08 before closing the day around 81.55 in the New York session.
The Sterling (GBP) fell in the sympathy with the Euro but earlier had hit multi month highs above 1.6250 on the back of strong January PMI Services at 54.5 vs. 49.7 previously. EUR/GBP is now below 0.8500 and threatening to break lower. Overall the GBP/USD traded with a low of 1.6120 and a high of 1.6281 before closing the day at 1.6140 in the New York session.
The Australian Dollar (AUD) remained strong gaining 2% against the Euro with some strong local data underpinning along with positive risk sentiment. December Trade Balance at 1.9bn vs. 1.6bn forecast. Overall the AUD/USD traded with a low of 1.0081 and a high of 1.0165 before closing the US session at 1.0150. UPDATE Upbeat RBA Quarterly Statement helps AUD Rally in Asia
Oil & Gold (XAU) surged higher after a quiet few session to break to the topside on middle eastern tensions. Overall trading with a low of USD$1324 and high of USD $1356 before ending the New York session at USD$1352 an ounce. Was supported on a dip towards $90 a barrel to finish roughly unchanged. WTI Oil Closed -$0.08 at $90.80 a barrel.
|Currency||Sup 2||Sup 1||Spot||Res 1||Res 2|
Euro - 1.3635
Initial support at 1.3571 (Jan 31 low) followed by 1.3541 (Jan 24 low). Initial resistance is now located at 1.3826 (Feb 3 high) followed by 1.3862 (Feb 2 High)
Yen - 81.55
Initial support is located at 80.93 (Jan 3 low) followed by 80.54 (Nov 9 low). Initial resistance is now at 82.15 (Feb 1 high) followed by 83.22 (Jan 27 high).
Pound - 1.6140
Initial support at 1.6128 (Feb 2 high) followed by 1.6059 (Jan 18 low). Initial resistance is now at 1.6279 (Feb 3 high) followed by 1.6299 (Nov 4 High).
Australian Dollar - 1.0180
Initial support at 1.0056 (Feb 2 low) followed by the 0.9964 (Feb 1 low). Initial resistance is now at 1.0256 (Dec 31 high) followed by 1.0300 (Big Figure Resistance).
Gold - 1350
Initial support at 1323 (Jan 31 low) followed by 1308 (Sep 28 low). Initial resistance is now at 1353 (Jan 24 high) followed by 1371 (Jan 20 high).
Oil - 90.80
Initial support at 90.00 (Intraday Support) followed by 89.50 (Intraday Support). Initial resistance is now at 91.50 (Intraday Resistance) followed by 92.50 (Intraday Resistance).
Written by Anthony Darvall