Markets Recover lead by GE surge
CURRENCY TRADING SUMMARY – 3rd December 2008 (00:30GMT)
·U.S. Dollar Trading (USD) the market responded well to comments from Fed Chief Bernanke that if US rates could not be cut further than other more unconventional methods may be considered to support the economy. Stocks rebounded lead by GE which kept its dividend intact. US automakers made their second pitch for US help while November Autosales dropped 30%. In U.S. share markets, the NASDAQ was up 51 points (3.7%) and the Dow Jones was up 270 points (3.31%). Crude Oil closed down $2.32 ending the New York session at $46.96 per barrel. Looking ahead, November ADP employment report is expected at -200K vs. -157K previously. November ISM non-manufacturing is expected at 42 vs. 44.4.
·The Euro (EUR) enjoyed a good bounce as US stocks rebounded and the market failed to break support at 1.2600. Traders are now looking to the ECB decision tomorrow and trading is expected to be light before the event. Eurozone PPI showed a dramatic drop of -0.8% in October. Overall the EUR/USD traded with a low of 1.2565 and a high of 1.2767 before closing the day at 1.2715. Looking ahead, October Retails Sales are seen at -0.4% vs. -0.2% previously.
·The Japanese Yen (JPY) strong buy orders in the 92’s discouraged attempts lower yesterday and as US stocks rebounded the USD/JPY found some support going forward. The crosses were able to pair losses as most majors made gains. Overall the USDJPY traded with a low of 92.65 and a high of 93.82 before closing the day around 93.30 in the New York session.
·The Sterling (GBP) the pound bounced off supports at 1.4800 but the foray above 1.5000 was short lived as traders focused on the coming BoE rate announcement. UK Construction PMI fell to 31.8 in November as the downturn continued. Overall the GDP/USD traded with a low of 1.4778 and a high of 1.5068 before closing the day at 1.4910 in the New York session. Looking ahead, November PMI services seen at 41.2 vs. 42.4. Update Nationwide Consumer Confidence at 50 vs. 54 previously.
·The Australian Dollar (AUD) found support even as the RBA cut rates by 100bps as the market bought the struggling Aussie on speculation that the proactive response will avert a recession. Retail Sales beat expectations at 0.7% vs. -0.4% expected. The recovery in US equities lead the AUD back to resistance at .6500. Overall the AUD/USD traded with a low of 0.6344 and a high of 0.6496 before closing the US session at 0.6430. UPDATE Australia Q3 GDP at 0.1% vs. 0.2% forecast.
·Gold (XAU) gained after heavy falls on Tuesday as the market still has demand for the precious metal. Overall trading with a low of USD$762 and high of USD$787 before ending the New York session at USD$782 an ounce.
|
Currency |
Sup 2 |
Sup 1 |
Spot |
Res 1 |
Res 2 |
|
EUR/USD |
1.2423 |
1.2563 |
1.2715 |
1.2766 |
1.2968 |
|
USD/JPY |
91.90 |
92.49 |
93.30 |
93.82 |
95.95 |
|
GBP/USD |
1.4703 |
1.4776 |
1.4920 |
1.5070 |
1.4398 |
|
AUD/USD |
0.6232 |
0.6333 |
0.6430 |
0.6544 |
0.6618 |
|
XAU/USD |
743.00 |
769.00 |
782.00 |
830.50 |
856.00 |
·Euro – 1.2715
Initial support at 1.2563 (Nov 28 low) followed by 1.2423 (Nov 21 low). Initial resistance is now located at 1.2766 (Dec 2 low) at followed by 1.2968 (Nov 27 high)
·Yen – 93.30
Initial support is located at 92.49 (Nov 28 low) followed by 91.9 (Oct 27 low). Initial resistance is now at 93.82 (Dec 2 high) followed by 95.95 (Nov 26 high).
·Pound – 1.4920
Initial support at 1.4776 (Dec 2 low) followed by 1.4703 (Nov 21 low). Initial resistance is now at 1.5070 (Dec 1 high) followed by 1.5398 (Dec 1 high).
·Australian Dollar – 0.6430
Initial support at 0.6333 (Nov 25 low) followed by the 0.6232 (Nov 24 low). Initial resistance is now at 0.6544 (Dec 1 high) followed by 0.6618 (Nov 25 high).
·Gold – 782
Initial support at 743 (Nov 21 low) followed by 725.4 (Nov 14 low). Initial resistance is now at 830.5 (Nov 25 high) followed by 856 (Oct 15 high).
