U.S. Dollar Trading (USD) slightly weaker than forecast Non Farm Payrolls in December at 103k vs. 175k forecast sent the Dollar lower across the board but the losses were small and the market soon returned to the Dollar strength trend. Bernanke also spoke to the senate stating there were signs the US may have self-sustaining growth. In US stocks, DJIA -22 points closing at 11674, S&P -2 points closing at 1271 and NASDAQ -6 points closing at 2703.
The Euro (EUR) Peripheral EU bond yields rose again on Friday with lingering concerns about debt contagion pushing the single currency below 1.3000. Q3 GDP fell to 0.3% vs. 0.4% previously. EUR/USD traded with a low of 1.2907 and a high of 1.3020 before closing at 1.2924. Looking ahead, January Sentix forecast at 11.25 vs. 9.7 previously.
The Japanese Yen (JPY) fell with the weaker than expected US Jobs Data back below Y83 before finding support and consolidating just above the figure. EUR/JPY fell to multi week lows under Y108 and is poised for more losses as sentiment sours. Overall the USDJPY traded with a low of 82.86 and a high of 83.67 before closing the day around 83.05 in the New York session. Looking ahead, Bank Holiday today in Japan
The Sterling (GBP) surged back above a 1.5500 and held above the level into the weekend as EUR/GBP supported the major. The last few weeks the Cable has been volatile but has held to a range, waiting for a new trend to develop. Overall the GBP/USD traded with a low of 1.5410 and a high of 1.5578 before closing the day at 1.5556 in the New York session.
The Australian Dollar (AUD) ended slightly higher on the day but failed on a few occasions to break back above 1.0000 after the soft US Jobs data. AUD/JPY is a critical cross and is struggling to hold recent gains falling back below Y83. Overall the AUD/USD traded with a low of 0.9909 and a high of 0.9994 before closing the US session at 0.9964.
Oil & Gold (XAU) day lows just before the release of US data saw $1350 tested before a rally to $1370 into the weekend. Overall trading with a low of USD$1353 and high of USD $1378 before ending the New York session at USD$1370 an ounce. Oil fell below $88 on weak US stocks but recovered well to finish slightly higher on the day. WTI Oil Closed +$0.20 at $88.40 a barrel.
|Currency||Sup 2||Sup 1||Spot||Res 1||Res 2|
Euro - 1.2890
Initial support at 1.2830 (Sep 14 low) followed by 1.2796 (61.8% retrace of 1.1877-1.4282). Initial resistance is now located at 1.3170 (Jan 6 high) followed by 1.3325 (Jan 5 high)
Yen - 83.00
Initial support is located at 82.88 (Jan 6 low) followed by 81.89 (Jan 5 low). Initial resistance is now at 83.91 (Dec 21 high) followed by 84.11 (Dec 20 high).
Pound - 1.5535
Initial support at 1.5367 (Dec 30 Low) followed by 1.5345 (Dec 28 low). Initial resistance is now at 1.5564 (Jan 6 high) followed by 1.5665 (Dec 31 high).
Australian Dollar - 0.9950
Initial support at 0.9863 (Dec 20 low) followed by the 0.9830 (Dec 16 low). Initial resistance is now at 1.0015 (Jan 6 high) followed by 1.0076 (Jan 5 high).
Gold - 1370
Initial support at 1351 (Nov 26 low) followed by 1335 (Nov 18 low). Initial resistance is now at 1385 (Jan 5 high) followed by 1417 (Jan 4 High).
Oil - 89.20
Initial support at 88.00 (Intraday Support) followed by 86.00 (Intraday Support). Initial resistance is now at 90.00 (Intraday Resistance) followed by 91.50 (Intraday Resistance).
Written by Anthony Darvall