CURRENCY TRADING SUMMARY –07 MARCH 07 (23:30GMT)
- U.S. Dollar Trading (USD) was mixed against all other majors on Tuesday trading on technicals for the majority of the day. In
US US
- The Euro (EUR) experienced plenty of sideways trading moving within an indecisive range, shrugging off any data released on Tuesday. The GDP came in as expected at 0.9% with the previous revised higher at 0.6%. Retail sales were also made public. Coming in softer for the month of January at -1% down on the previous 0.3%. Overall the Euro traded within a range of a low 1.3081 and a high of 1.3132 before closing the day at 1.3123 in the
New York - The Japanese Yen (JPY) slid up on the back of the unwinding of carry trades phenomena ceasing after 3 days, as carry-trades seem to have resumed mildly for investment in riskier assets during the global market rebound. The Finance Minister added to this turn by raising some concern about the strength of the JPY and corresponding fundamentals. Overall the JPY traded within a range of a low 115.22 and a high of 116.74 before ending the day at 116.61 in the
New York - The Sterling (GBP) strengthened following the previous days losses against the USD and JPY due to a rebound in global stocks. This rally was also assisted by a strong
UK New York - The Australian Dollar (AUD) rebounded on Tuesday on the back of an end to unwinding of carry trades and a stronger Trade Balance. The figure came in at -0.876 bln with the previous month revised higher at -1.4 bln. Overall the AUD traded within arrange of a low 0.7683 and a high of 0.7755 before closing the day at 0.7747. Looking ahead, the RBA decision is set for release with market expectations at unchanged at 6.25%. In other news the GDP is also out for the fourth quarter with markets expecting a figure of 0.5% slightly up on the previous 0.3%. UPDATE: RBA interest rate: 6.25% unchanged, GDP: 1.0%
- Gold (XAU) the gold rose by US$8.40 an ounce to US$647.60 as investors were willing to re enter the commodity market.
- The Turkish Lira (TRY) After an asset recovery following the foreign market, the TRY strengthened mildly against USD.
TECHNICAL COMMENTARY
| Currency | Sup 2 | Sup 1 | Spot | Res 1 | Res 2 |
| EUR/USD | 1.3016 | 1.3072 | 1.3130 | 1.3213 | 1.3261 |
| USD/JPY | 114.43 | 115.15 | 116.65 | 116.78 | 117.84 |
| GBP/USD | 1.9182 | 1.9184 | 1.9335 | 1.9450 | 1.9588 |
| AUD/USD | 0.7631 | 0.7680 | 0.7765 | 0.7782 | 0.7846 |
| XAU/USD | 626.73 | 632.80 | 647.80 | 648.00 | 656.40 |
- Euro 1.3130
Initial support at 1.3072 (Mar 5 low) followed by 1.3016 (Feb 22 corrective low). Initial resistance is now located at 1.3213 (Mar 5 high) followed by 1.3261 (Feb 27 high).
- Yen 116.65
Initial support is located at 115.15 (Mar 5 low) followed by 114.43 (Dec 5 reaction low). Initial resistance is now at 116.78 (Mar 5 high) followed by 117.84 (Mar 2 high)
- Pound – 1.9335
Initial support at 1.9184 (Mar 5 low) followed by 1.9182 (Former resistance from Nov 10). Initial resistance is now at 1.9450 (Mar 5 high) followed by 1.9588 (Mar 2 high)
- Australian Dollar – 0.7765
Initial support at 0.7680 (Mar 6 low) followed by 0.7631(61.8% retracement of the .7914 to 0.7982 advance). Initial resistance is now at 0.7782 (38.2% retracement of the .7948 to 0.7680 decline) followed by 0.7846 (61.8% retracement of the 0.7948 to 0.7680 decline)
- Gold – 647.80
Initial support at 632.80 (Mar 6 low) followed by 626.73 (Jan 18 low). Initial resistance is now at 648.00 (Mar 6 high) followed by 656.40 (Former support from Feb 20)
