MARKET SUMMARY –27APRIL06 (05:00GMT)
- The Dollar continued to weaken versus the major currencies despite strong economic data, this time with durable goods orders exceeding expectations. US durable goods surged 6.1% in March after an upwardly revised 3.4% rise in February and an 8.9% fall in January. The market had expected a much smaller rise of 1.8%. New home sales rose by 13.8% in March to 1.213 million units, above forecasts centered on 1.1m. The Fed Beige Book says activity continued to expand in March and the first half of April. Sees labour markets tightening with rising wages, healthy retail sales and limited pricing power from firms. Also believes the slowing of house price increases as a “healthy market outcome”. In other markets, US shares rose overnight due to higher earnings with the Down Jones closing at a 6 year high. The Dow Jones index rose by 71 pts and the NASDAQ was up by 3pts. US treasury yields rose to fresh four year highs in response to the strong economic data. Crude oil fell for the third straight day despite declines in US crude and gasoline stocks. Crude oil fell by US95c to US$71.93 a barrel. Looking ahead and the market is focused on Fed Chairman Bernanke’s speech to the Joint Economic Committee due out later today in the States.
- The Euro rose to fresh 7 month highs from 1.2385 to 1.2470, before closing at 1.2450 in the
New York - The Japanese yen traded in a range of 114.62 to 115.39, before closing at 114.75 in the
New York
- The
Sterling traded in a range of 1.7801 to 1.7911, before closing at 1.7840 in theNew York - The Aussie continued to trade higher from a low of 0.7438 to a high of .7546, before closing at 0.7525 in the
New York
- Gold moved 10$ higher to 639.50 (current levels) over USD general weakness. The gold spends last couple of days consolidating last week’s sell off.
TECHNICAL COMMENTARY
| Currency | Sup 2 | Sup 1 | Spot | Res 1 | Res 2 |
| EUR/USD | 1.2265 | 1.2332 | 1.2450 | 1.2541 | 1.2590 |
| USD/JPY | 113.41 | 114.24 | 114.75 | 115.98 | 116.47 |
| GBP/USD | 1.7679 | 1.7749 | 1.7860 | 1.7946 | 1.8004 |
| AUD/USD | 0.7357 | 0.7419 | 0.7525 | 0.7590 | 0.7617 |
- Euro 1.2450
Initial support at 1.2332 (Apr 24 low) followed by 1.2265 (Apr 21 low). Initial resistance is now located at 1.2541 (1.2541 Sep 5, 2005 high) followed by 1.2590 (Sep 2, 2005 high).
- Yen 114.75
Initial support is located at 114.24 (Apr 24 low) followed by 113.41 (Jan 12 reaction low). Initial resistance is now at 115.98 (Apr 24 reaction high) followed by 116.47 (Apr 21 low and top of gap).
- Pound – 1.7860
Initial support at 1.7749 (Apr 21 corrective low) followed by 1.7679 (Apr 18 low). Initial resistance is now at 1.7946 (61.8% retracement of 1.8501 to 1.7048 decline and Apr 25) followed by 1.8004 (38.2% retracement of the 1.9551 to 1.7048 decline).
- Aussie – 0.7525
Initial support at 0.7419 (Apr 24 reaction low) followed by 0.7357 (Apr 20 reaction low). Initial resistance is now at 0.7590 (Jan 31 reaction high) followed by 0.7617 (61.8% retracement of the 0.7989 to 0.7015 decline).
