U.S. Dollar Trading (USD) the market sold the dollar aggressively after weaker than expected November Payrolls at +39k vs. 140k forecast with the Unemployment Rate also jumping to 9.8% vs. 9.6% previously. Adding to Dollar selling pressure was reported comments from the FED Chairman Bernanke that the Central Bank may increase bond purchases past the 600bn announced last month. In US stocks, DJIA +19 points closing at 11382, S&P +3 points closing at 1224 and NASDAQ +12 points closing at 2591. Looking ahead, Fed Chief Bernanke Speaks.
The Euro (EUR) surged back above 1.3400 to complete a 400 point rally from sub 1.3000 levels earlier in the week. October Retail Sales gained 0.5% vs. -0.2% previously. The strong rally in the Euro off lows does not reflect Eurozone strength but is a better reflection of USD weakness. EUR/USD traded with a low of 1.3194 and a high of 1.3414 before closing at 1.3408.
The Japanese Yen (JPY) the USD/JPY moved sharply lower after the US Jobs data was released doing major technical damage to the recovery and putting the Y80 level back on the radar of the bears. Crosses where more mixed with AUD/JPY and EUR/JPY finishing slightly stronger. Overall the USDJPY traded with a low of 82.54 and a high of 83.89 before closing the day around 82.65 in the New York session.
The Sterling (GBP) rallied back towards 1.5800 reacting to USD weakness and beginning to be bought on dips in recent sessions. EUR/GBP was subdued near 0.8500 in choppy trade lacking a clear direction at current levels. November PMI Services was at 53 vs. 53.2 previously. Overall the GBP/USD traded with a low of 1.5582 and a high of 1.5786 before closing the day at 1.5784 in the New York session.
The Australian Dollar (AUD) The Aussie was very strong rallying the entire European and US session on improving risk appetite and investor demand for the high yielding commodity currency. Recent economic data has been weaker than expected from Australia and is letting traders enjoy good two way action. Overall the AUD/USD traded with a low of 0.9741 and a high of 0.9937 before closing the US session at 0.9931.
Oil & Gold (XAU) popped above $1400 extending gains and closed within striking distance of all-time highs at $1424. Overall trading with a low of USD$1386 and high of USD $1416 before ending the New York session at USD$1414 an ounce. Oil continued to rally extending gains towards $90 a barrel. WTI Oil Closed +$1.19 at $89.20 a barrel.
|Currency||Sup 2||Sup 1||Spot||Res 1||Res 2|
Euro - 1.3390
Initial support at 1.2969 (Nov 30 low) followed by 1.2830 (Sep 14 low). Initial resistance is now located at 1.3419 (Dec 3 high) followed by 1.3634 (Nov 23 high)
Yen - 82.80
Initial support is located at 82.53 (Dec 3 low) followed by 81.83 (0.618 of 80.23-84.40). Initial resistance is now at 84.41 (Nov 29 high) followed by 85.40 (Sept 24 high).
Pound - 1.5760
Initial support at 1.54 (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 - 0.9915
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 0.9939 (Dec 3 high) followed by 1.0000 (Psychological Resistance).
Gold - 1410
Initial support at 1362 (Nov 30 low) followed by 1351 (Nov 26 low). Initial resistance is now at 1415 (Dec 3 high) followed by 1424 (Nov 9 high).
Oil - 89.35
Initial support at 88.00 (Intraday Support) followed by 87.00 (Intraday Support). Initial resistance is now at 90.00 (Intraday Resistance) followed by 91.00 (Intraday Resistance).
Written by Anthony Darvall