4th day of US stock gains ahead of Thanksgiving Holiday
CURRENCY TRADING SUMMARY – 27th November 2008 (00:30GMT)
·U.S. Dollar Trading (USD) was able to maintain strength even as Oil and Stocks rallied. The Economic data released was extremely weak, with Personal spending falling -1% and October Durable goods orders falling -6.2%. Also released weekly jobless claims remaining at high levels of 529K. New Homes sales were worse than expected at 433K vs. 441 forecast. In U.S. share markets, the NASDAQ was up 67 points (4.6%) and the Dow Jones was up 247 points 2.91%). Crude Oil closed up $3.67 ending the New York session at $54.44 per barrel. Looking ahead, Thanksgiving Holiday in US.
·The Euro (EUR) slipped off the 1.30 handle in Asia and remained weak for the rest of the day as the market began to focus on coming rate cuts from the ECB. Rallies in Oil and the Dow help to lift the Euro of lows into the US close. Overall the EUR/USD traded with a low of 1.2822 and a high of 1.3032 before closing the day at 1.2895. Looking ahead, German Unemployment change is expected at -4K vs. -26K previously and an unchanged Unemployment rate at 7.5% in November. Eurozone Sentiment Indicators are also released and the ECB president Trichet speaks.
·The Japanese Yen (JPY) found strength as Asian stocks were sluggish and recession concerns turned USD/JPY and crosses lower. Helping the market was the China rate cut of 108bps but this was unable to be sustained even as US stocks rallied. Overall the USDJPY traded with a low of 94.62 and a high of 95.94 before closing the day around 95.50 in the New York session. Looking ahead, BOJ meeting minutes are released and Governor Shirakawa will be speaking.
·The Sterling (GBP) was extremely volatile as low liquidity made it easy to move wildly. After starting the day near 1.55 the GBP was offer most of the day but found support as Oil and Stocks rallied. Overall the GDP/USD traded with a low of 1.5179 and a high of 1.5444 before closing the day at 1.5350 in the New York session.
·The Australian Dollar (AUD) gained support from multiple areas as commodities rallied and stocks were buoyant in the US. After losing the .6500 level in Asia the key level proved a magnet for the rest of the day although .6550 has proven too big a hurdle to jump in recent sessions. Overall the AUD/USD traded with a low of 0.6431 and a high of 0.6551 before closing the US session at 0.6510.
·Gold (XAU) traders took profit on the precious metal as German Inflation fell sharply, halting a 5 day rally. Overall trading with a low of USD$809 and high of USD$823 before ending the New York session at USD$812 an ounce.
|
Currency |
Sup 2 |
Sup 1 |
Spot |
Res 1 |
Res 2 |
|
EUR/USD |
1.2568 |
1.2804 |
1.2895 |
1.3081 |
1.3116 |
|
USD/JPY |
93.62 |
94.94 |
95.55 |
97.43 |
97.55 |
|
GBP/USD |
1.1484 |
1.4984 |
1.5335 |
1.5500 |
1.5535 |
|
AUD/USD |
0.6232 |
0.6298 |
0.6500 |
0.6618 |
0.6696 |
|
XAU/USD |
743.00 |
786.00 |
810.00 |
856.59 |
871.00 |
·Euro – 1.2895
Initial support at 1.2804 (Nov 25 low) followed by 1.2568 (Nov 24 low). Initial resistance is now located at 1.3081 (Nov 25 low) at followed by 1.3116 (Nov 5 high)
·Yen – 95.55
Initial support is located at 94.94 (Nov 24 low) followed by 93.62 (Nov 20 low). Initial resistance is now at 97.43 (Nov 25 high) followed by 97.55 (Nov 17 high).
Initial support at 1.4984 (Nov 25 low) followed by 1.4841 (Nov 24 low). Initial resistance is now at 1.5500 (Key level) followed by 1.5535 (Nov 25 high).
·Australian Dollar – 0.6500
Initial support at 0.6298 (76.4% retrace 0.7015 to 0.6076) followed by the 0.6232 (Nov 24 low). Initial resistance is now at 0.6618 (Nov 25 high) followed by 0.6696 (Nov 14 high).
·Gold – 810
Initial support at 786 (Nov 24 low) followed by 743 (Nov 21 low). Initial resistance is now at 856 (Oct 15 high) followed by 871 (Oct 13).
