While gold continues to show relative strength to any kind of market shake up oil shows some weakness as worse than expected GDP sent it to test the 75.50 resistance level. The S&P and the DOW 30 indices declined Tuesday but ended off their lows for the day after the Fed raised its forecast for 2010. The S&P 500 shed 0.1 and the Dow Jones Industrial Average ended down 17.24, or 0.2 percent.
Gold is more IN than jeans recently; gold is so IN that even when the Euro falls against the dollar gold is still being bought. Gold rose to a record high above $1,175 on Wednesday, the second time this week it has notched up a new high on solid investment sentiment and expectations of more gold buying by the public sector. A recent purchase of 200 tonnes of gold by India's central bank sparked a rally that lifted the precious metal to successive record highs with it gaining about 12 percent this month alone. The purchase was part of a planned sale of 403.3 tonnes by the International Monetary Fund. Investors continued to believe that other central banks may buy gold, although hopes were perhaps not as high as they once were.
Resistance: 1,200 Support: 1,160
The dollar weakened against higher- yielding currencies, reversing earlier gains, as renewed signs that the global economy is recovering spurred investors to buy riskier assets. The dollar reached the lowest level in more than a month against the yen after meeting minutes showed Fed officials refrained from voicing concern over the greenback's recent decline. A lack of clear-cut warning from the Fed may make it easier for short-term players to test the downside of the dollar against the yen.
Japanese shipments abroad dropped 23.2 percent in October from a year earlier, compared with a 30.6 percent decline in September, the Finance Ministry said today in Tokyo. The median estimate of economists surveyed by Bloomberg was for a 26.8 percent decline. From a month earlier, exports rose 2.5 percent, the fastest pace since April.
USDJPY Resistance: 90.00 Support: 88.00
The Australian dollar jumped as Reserve Bank of Australia Deputy Governor Ric Battellino said the economy has entered a new upswing, fueling speculation the central bank will raise rates for a third-straight month in December. The Australian dollar was the biggest gainer against the greenback as we and the market expect the bank of Australia to notch interest rates one more notch next meeting.
AUDUSD Resistance: 0.9300 Support: 0.9200
I will not waste any words here to talk about the macro picture.... Trade the bands, if they break get out.
Resistance: 79.80 Support: 75.50