USD Higher on Profit taking
CURRENCY TRADING SUMMARY – 11th June (00:30GMT)
U.S. Dollar Trading (USD) managed to end slightly higher after rebounding off lows set in the European session. A good US treasury Auction helped the USD gain for the rest of the day. US stocks couldn’t manage the optimism seen in Asia and Europe although higher Oil continues to support mining stocks. April‘s Trade Balance came in at expectations of -29.2B. Crude Oil closed up $1.92 to finish the day at $70.01. In US share markets, the Nasdaq was down 7 points or -0.38% and the Dow Jones was down 24 points or -0.27%. Looking ahead, Retail Sales are forecast at 0.5% vs. -0.4% previously.
The Euro (EUR) tried to rally as the Nikkei surged towards 10000. Sluggish US stocks and a Financial Times article on European banks hurt sentiment and the pair slipped below 1.4000. Overall the EUR/USD traded with a low of 1.4004 and a high of 1.3804 before closing at 1.3910.
The Japanese Yen (JPY) weakened through the USD/JPY which rallied off support at 97 Yen to break back above 98. Crosses were mixed with year highs in AUD/JPY leading to profit taking in the US session. Overall the USDJPY traded with a low of 97.24 and a high of 98.57 before closing the day around 97.40 in the New York session. UPDATE Japan Q1 GDP at -3.8% vs. -4.0% forecast.
The Sterling (GBP) rallied aggressively in European session on better than expected manufacturing and Industrial production figures in April. April Trade Balance at -7.0Bn vs. -6.4Bn forecast. Overall the GBP/USD traded with a low of 1.6238 and a high of 1.6475 before closing the day at 1.6350 in the New York session.
The Australian Dollar (AUD) was very strong in Asia as Consumer Confidence leapt the most in 20 years on signs of an economic recovery. AUD/JPY was very well supported as the Nikkei approached 10000 and mining stocks gained as Oil and metals rallied. Overall the AUD/USD traded with a low of 0.7966 and a high of 0.8138 before closing the US session at 0.8030. Looking ahead, Australian June Unemployment is forecast at -30k vs. +27.2K previously.
Gold (XAU) had another range bound day with choppy action around $955. Overall trading with a low of USD$946 and high of USD$965 before ending the New York session at USD$955 an ounce.
|
Currency |
Sup 2 |
Sup 1 |
Spot |
Res 1 |
Res 2 |
|
EUR/USD |
1.3728 |
1.3793 |
1.3980 |
1.4267 |
1.4364 |
|
USD/JPY |
95.33 |
96.52 |
98.25 |
99.74 |
100.73 |
|
GBP/USD |
1.5757 |
1.6041 |
1.6335 |
1.6662 |
1.6739 |
|
AUD/USD |
0.7745 |
0.7828 |
0.8025 |
0.8263 |
0.8378 |
|
XAU/USD |
936.00 |
941.00 |
955.00 |
990.00 |
1006.00 |
Euro – 1.3980
Initial support at 1.3793 (May 28 low) followed by 1.3728 (May 21 low). Initial resistance is now located at 1.4267 (Jun 5 high) followed by 1.4364 (Dec 29 high)
Yen – 98.20
Initial support is located at 96.52 (Jun 5 low) followed by 95.33 (Jun 2 low). Initial resistance is now at 99.74 (May 7 high) followed by 100.73 (April 13 high).
Pound – 1.6335
Initial support at 1.6041 (Former Resistance) followed by 1.5757 (May 22 low). Initial resistance is now at 1.6662 (Jun 3 high) followed by 1.6739 (61.8% retrace).
Australian Dollar – 0.8025
Initial support at 0.7828 (Jun 8 low) followed by the 0.7745 (May 28 low). Initial resistance is now at 0.8263 (Jun 5 high) followed by 0.8378 (Sept 26 high).
Gold – 955
Initial support at 941 (May 26 low) followed by 936 (May 21 low). Initial resistance is now at 990 (Jun 3 high) followed by 1006 (Feb 20 high).
