·U.S. Dollar Trading (USD) lost ground initially in Asia as stocks were buoyant given the positive lead from Wall St. European stocks couldn’t hold gains though and the USD rose on Risk aversion flows. US data was very weak with December Housing Starts dropping to 0.55M vs. 0.61M previously and Weekly Jobless claims climbing to 589K vs. 540K forecast. Crude Oil closed up $0.12 ending the New York session at $43.67 per barrel. In US share markets, the Dow Jones dropped -105 points or -1.28% and the NASDAQ dropped -41 points or -2.76%.
·The Euro (EUR) consolidated above 1.3000 in the Asian session although as stocks weakened in Europe the pair slipped. Weak US data allowed losses to be minimal. November Industrial Orders dropped -4.5%, better than the -4.8% forecast. Overall the EUR/USD traded with a low of 1.2910 and a high of 1.3082 before closing the day at 1.3010. Looking ahead, Eurozone PMI for January with services forecast at 41.5 vs. 42.1 previously and Manufacturing at 33.2 vs. 33.9 previously.
·The Japanese Yen (JPY) couldn’t sustain the levels seen in Asia as weak data and risk aversion pushed most crosses lower. USD/JPY was especially soft heading into the US session finding support at 88. The Bank of Japan held rates at 0.1% but did state that the Economy is deteriorating. Overall the USDJPY traded with a low of 88.08 and a high of 89.54 before closing the day around 88.90 in the New York session.
·The Sterling (GBP) was weak after failing at the 1.4000 level early in Asia. January CBI orders dropped more than expected at -48 vs. -39 forecast. European stocks were soft and this undermined support, the pair sliding to 1.36’s again. Overall the GDP/USD traded with a low of 1.3692 and a high of 1.3977 before closing the day at 1.3890 in the New York session. Looking ahead, Q4 GDP is forecast at -1.2% vs. -0.6% previously. Also released December -0.6% vs. 0.3% previously.
·The Australian Dollar (AUD) tracked equities falling off highs as stocks sentiment turned again negative. The pair ranged between 0.65 and 0.66 with support from buoyant Gold and Oil underpinning. Overall the AUD/USD traded with a low of 0.6493 and a high of 0.6617 before closing the US session at 0.6580.
·Gold (XAU) dropped off in Europe before recovering as weak US data allowed a rebound. Overall trading with a low of USD$844 and high of USD$863 before ending the New York session at USD$855 an ounce.
|
Currency |
Sup 2 |
Sup 1 |
Spot |
Res 1 |
Res 2 |
|
EUR/USD |
1.2800 |
1.2825 |
1.3005 |
1.3104 |
1.3387 |
|
USD/JPY |
86.33 |
87.13 |
89.05 |
90.16 |
91.67 |
|
GBP/USD |
1.3622 |
1.3690 |
1.3875 |
1.4024 |
1.4443 |
|
AUD/USD |
0.6294 |
0.6457 |
0.6560 |
0.6684 |
0.6841 |
|
XAU/USD |
816.00 |
824.20 |
855.00 |
870.00 |
890.00 |
·Euro – 1.3005
Initial support at 1.2825 (Jan 21 low) followed by 1.2800 (Dec 9 low). Initial resistance is now located at 1.3104 (Jan 20 high) at followed by 1.3387 (Jan 19 high)
·Yen – 89.05
Initial support is located at 87.13 (Jan 21 low) followed by 86.33 (Projected downside target). Initial resistance is now at 90.16 (Jan 21 high) followed by 91.67 (Jan 9 high).
·Pound – 1.3875
Initial support at 1.3690 (Jan 22 low) followed by 1.3622 (Jan 21 low). Initial resistance is now at 1.4024 (Jan 21 high) followed by 1.4443 (Jan 20 high).
·Australian Dollar – 0.6560
Initial support at 0.6457 (Jan 21 low) followed by the 0.6294 (Dec 5 low). Initial resistance is now at 0.6684 (Jan 20 high) followed by 0.6841 (Jan 19 high).
·Gold – 855
Initial support at 824 (Jan 21 low) followed by 816 (Dec 16 low). Initial resistance is now at 870 (Jan 6 high) followed by 890 (Dec 29 high).
