USD crumbles as Non Farm Sparks Euro rally
CURRENCY TRADING SUMMARY – 11th May (00:30GMT)
·U.S. Dollar Trading (USD) finished the week at multi-month lows against the Euro as better than expected US Job Data allowed risk appetite to jump another notch higher. April Non-Farm Payrolls were down -539K vs. -590K forecast. The Unemployment Rate leaped to 8.9% vs. 8.5% previously. Crude Oil was up $1.92 ending the New York session at $58.63 per barrel. In US share markets, the Nasdaq was up 22 points or 1.33% and the Dow Jones was up 164 points or 1.96%.
·The Euro (EUR) held to the 1.3400 area before the US data prompted a rally that did not stop until above 1.3600. The catch-up of the Euro post ECB allowed most of the crosses to gain led by the EUR/GBP and EUR/JPY. March German Industrial Production remained flat vs. -1.3% expected. Overall the EUR/USD traded with a low of 1.3342 and a high of 1.3629 before closing at 1.3621.
·The Japanese Yen (JPY) even the relentless rise in risk appetite couldn’t stop the USD/JPY sliding on the back of USD weakness. Losses were limited however as crosses providing plenty of support. Overall the USDJPY traded with a low of 98.32 and a high of 99.60 before closing the day around 98.50 in the New York session.
·The Sterling (GBP) support at 1.5000 was tested with the market still worried about the expansion of the BOE’s Quantitative Easing program. The Key support held and the subsequent rally helped the Pound close above 1.5200 at its highest level since January. Overall the GBP/USD traded with a low of 1.4980 and a high of 1.5220 before closing the day at 1.5216 in the New York session.
·The Australian Dollar (AUD) continued to behave like a fast Euro shooting to above 0.7700 or 8 Month Highs. AUD/JPY buying and support from commodities underpinned the move higher. Resistance is thin at these levels and could see 0.8000 tested if stocks can continue to gain. Overall the AUD/USD traded with a low of 0.7509 and a high of 0.7707 before closing the US session at 0.7697. Looking ahead, April Nab Business Confidence previously at -13.
·Gold (XAU) struggled to take advantage of the USD weakness as demand for gold eased. Overall trading with a low of USD$905 and high of USD$920 before ending the New York session at USD$916 an ounce.
|
Currency |
Sup 2 |
Sup 1 |
Spot |
Res 1 |
Res 2 |
|
EUR/USD |
1.3212 |
1.3247 |
1.3620 |
1.3628 |
1.3739 |
|
USD/JPY |
97.15 |
97.94 |
98.75 |
99.75 |
100.43 |
|
GBP/USD |
1.4704 |
1.4836 |
1.5210 |
1.5231 |
1.5373 |
|
AUD/USD |
0.7233 |
0.7337 |
0.7685 |
0.7738 |
0.8097 |
|
XAU/USD |
878.00 |
895.00 |
917.00 |
933.00 |
845.00 |
·Euro – 1.3620
Initial support at 1.3247 (May 6 low) followed by 1.3212 (38.2% retrace 1.2889-1.3736). Initial resistance is now located at 1.3628 (May 8 high) followed by 1.3739 (Mar 19 high)
·Yen – 98.75
Initial support is located at 97.94 (May 6 low) followed by 97.15 (Apr 30 low). Initial resistance is now at 99.75 (Apr 17 high) followed by 100.43 (Apr 14 high).
·Pound – 1.5210
Initial support at 1.4836 (May 4 low) followed by 1.4704 (Apr 30 low). Initial resistance is now at 1.5231 (May 8 high) followed by 1.5373 (Jan 8 high).
·Australian Dollar – 0.7685
Initial support at 0.7337 (May 6 low) followed by the 0.7233 (Apr 30 low). Initial resistance is now at 0.7738 (Oct 6 high) followed by 0.8097 (Sept 30 high).
·Gold – 917
Initial support at 895 (May 6 low) followed by 878 (Apr 21 low). Initial resistance is now at 933 (Apr 1 high) followed by 945 (Mar 26 high).
