CURRENCY TRADING SUMMARY –11 SEPTEMBER06 (05:00GMT)
- U.S. Dollar Trading (USD) was generally stronger across the board against the majors in the overnight foreign exchange trading session. Market participants are worried that the US Federal Reserve will need to increase rates to keep inflation at bay. This view was further strengthened after US Treasury Secretary Henry Paulson said he was in favour of a stronger dollar. In other markets, the Dow Jones index rose by 60pts and the NASDAQ rose by 10pts as oil prices fell, helping consumer-dependent companies. Crude oil fell to five month lows as fuel inventories were seen to rise. Crude fell by US$1.07 a barrel to US$66.25.
- The Euro (EUR) traded within a low of 1.2653 and a high of 1.2739, before closing at 1.2674 in the
New York
- The Japanese Yen (JPY) traded within a low of 116.11 and a high of 117.01 versus the dollar, before closing at 116.95 in the
New York
- The Sterling (GBP) traded within a low of 1.8630 and a high of 1.8761, before closing at 1.8656 in the
New York
- The Australian Dollar (AUD) traded within a low of 0.7585 and a high of 0.7528, before closing at 0.7540 in the
New York - Gold (XAU) fell by US$7.60 to US$607.30 an ounce as the greenback strengthened and oil weakened.
TECHNICAL COMMENTARY
| Currency | Sup 2 | Sup 1 | Spot | Res 1 | Res 2 |
| EUR/USD | 1.2570 | 1.2641 | 1.2665 | 1.2743 | 1.2836 |
| USD/JPY | 115.56 | 116.10 | 116.75 | 117.07 | 117.51 |
| GBP/USD | 1.8527 | 1.8618 | 1.8655 | 1.8773 | 1.8872 |
| AUD/USD | 0.7442 | 0.7495 | 0.7525 | 0.7601 | 0.7683 |
| XAU/USD | 594.25 | 602.66 | 605.00 | 640.60 | 645.00 |
- Euro 1.2665
Initial support at 1.2641 (61.8% retracement of the 1.2456 to 1.2941 advance) followed by 1.257 (76.4% retracement of the 1.2456 to 1.2941 advance). Initial resistance is now located at 1.2743 (Sep 8 high) followed by 1.2836 (Sep 6 high).
- Yen 116.75
Initial support is located at 116.1 (Sep 8 low) followed by 115.56 (Sep 5 low). Initial resistance is now at 117.07 (Sep 7 high) followed by 117.51 (Aug 31 reaction high).
- Pound – 1.8655
Initial support at 1.8618 (50% retracement of the 1.8090 to 1.9146 advance) followed by 1.8527 (Jul 27 low). Initial resistance is now at 1.8773 (Sep 8 high) followed by 1.8872 (Sep 7 high).
- Australian Dollar – 0.7525
Initial support at 0.7495 (50% retracement of the 0.7269 to 0.7722 rally) followed by 0.7442 (61.8% retracement of the 0.7269 to 0.7722 rally). Initial resistance is now at 0.7601 (Sep 8 high) followed by 0.7683 (Sep 7 high).
- Gold – 605
Initial support at 602.66 (Jul 24 reaction low) followed by 594.25 (61.8% retracement of the 543.50 to 676.35 advance). Initial resistance is now at 640.6 (Sep 5 high) followed by 645 (Aug 11 high).
