Australian FOREX Daily Outlook 18/08/2006

CURRENCY TRADING SUMMARY –18 AUGUST06 (05:00GMT)

• U.S. Dollar Trading (USD) strengthened against the majors in the overnight forex trading session after weakening during European trading. Initial jobless claims came in at 312k compared to a 315k estimate. Leading indicators also disappointed coming in at -0.1 compared to a 0.1 forecast. In other markets, the Dow Jones index rose a modest 8pts while the NASDAQ was also up 8pts. Crude oil fell as supply concerns were eased in the US. Oil fell by US$1.83 a barrel to US$70.06. Looking ahead The University of Michigan sentiment is out today.
  

• The Euro (EUR) traded within a low of 1.2815 and a high of 1.2885, before closing at 1.2828 in the New York session. On the data front, Eurozone CPI disappointed coming in at -0.3% for July from an expected -0.2%. Industrial production came in at -0.1% right on expectations. Looking ahead, the Eurozone trade balance is due out today.
  

• The Japanese Yen (JPY) traded within a low of 115.20 and a high of 116.15 versus the dollar, before closing at 115.98 in the New York session.
  

• The Sterling (GBP) traded within a low of 1.8824 and a high of 1.9006, before closing at 1.8857 in the New York session. On the data front, retail sales was worse than expected for July coming in at -0.3% from an estimated 0.2%.
  

• The Australian Dollar (AUD) traded within a low of 0.7602 and a high of 0.7664, before closing at 0.7610 in the New York session.
  

• Gold (XAU) fell by US$13.70 to US$614.20 an ounce as investors sold out after gold could not break resistance at US$633, and the continuing stability in the Middle East.