Global Stocks Rally, USD Weak
CURRENCY TRADING SUMMARY – 10th November (00:30GMT)
U.S. Dollar Trading (USD) a global stock rally led most pairs to gain against the greenback as investors searched for higher yielding investments. AUD and NZD were especially strong with the highest interest rates of the major currencies. Gold rallied past $1100 for fresh all time highs. In US Stocks, DJIA +203 points closing at 10226, S& P +23 points closing at 1093 and NASDAQ +41 points closing at 2154. Looking ahead, FOMC members Yellen and Lockhart speak.
The Euro (EUR) grinded higher for most of the day as the USD was under pressure finally breaking above the key 1.5000 level in the US session on remarks from ECB’s Stark that in the December meeting they will discuss exit strategies. September German Trade at 9.9bn vs. 11.5bn forecast. Overall the EUR/USD traded with a low of 1.4852 and a high of 1.5022 before closing at 1.4995. looking ahead, November ZEW Index forecast at 55 vs. 56 previously.
The Japanese Yen (JPY) was unchanged against the USD trading around the 90 Yen level. Crosses were all higher as risk appetite kept AUD/JPY and NZD/JPY in strong demand. EUR/JPY found strong resistance at 135 Yen. Overall the USDJPY traded with a low of 89.72 and a high of 90.29 before closing the day around 89.90 in the New York session. UPDATE October Current Account at 1568bn vs. 1530bn forecast.
The Sterling (GBP) surged past Friday’s high as the market sold the USD aggressively in Asia. The pair struggled to hold above 1.6800 and pulled back to the low 1.67’s by the end of New York. EUR/GBP hit 6 week lows below 0.8900. Overall the GBP/USD traded with a low of 1.6615 and a high of 1.6846 before closing the day at 1.6730 in the New York session. Looking ahead, September Trade Balance forecast at -6.1bn vs. -6.24bn previously.
The Australian Dollar (AUD) was very strong along with its cousin the New Zealand Dollar. The Aussie opened above 0.9200 and rallied as Home Finance surged 5% in October. AUD/NZD reversed from above 1.26 as Kiwi rebounded nicely from last weeks sell off. Overall the AUD/USD traded with a low of 0.9194 and a high of 0.9321 before closing the US session at 0.9290. UPDATE October NAB Business Confidence 16 vs. 14 previously.
Oil & Gold (XAU) traded at fresh year highs above $1110 on continued USD weakness. Overall trading with a low of USD$1095 and high of USD$1111 before ending the New York session at USD$1102 an ounce. Gained with the large rally in US stocks. Crude Oil was up $2.37 ending the New York session at $79.80.
TECHNICAL COMMENTARY
|
Currency |
Sup 2 |
Sup 1 |
Spot |
Res 1 |
Res 2 |
|
EUR/USD |
1.4702 |
1.4811 |
1.4995 |
1.5063 |
1.5163 |
|
USD/JPY |
89.20 |
89.62 |
89.85 |
90.86 |
91.32 |
|
GBP/USD |
1.6467 |
1.6617 |
1.6755 |
1.7043 |
1.7332 |
|
AUD/USD |
0.9026 |
0.9092 |
0.9300 |
0.9329 |
0.9476 |
|
XAU/USD |
1080.00 |
1087 |
1103.00 |
1129.00 |
1136.00 |
|
OIL/USD |
75.00 |
78.00 |
79.30 |
80.00 |
82.00 |
Euro – 1.4995
Initial support at 1.4811 (Nov 5 low) followed by 1.4702 (Nov 4 low). Initial resistance is now located at 1.5063 (Oct 26 high) followed by 1.5163 (0.764 retrace of 1.5063-1.4624)
Yen – 89.85
Initial support is located at 89.62 (Nov 6 low) followed by 89.20 (Nov 2 low). Initial resistance is now at 90.86 (Nov 4 high) followed by 91.32 (Oct 29 high).
Pound – 1.6755
Initial support at 1.6617 (Nov 9 low) followed by 1.6467 (Nov 5 low). Initial resistance is now at 1.7043 (Aug 5 high) followed by 1.7332 (50% retrace of 2.1161 – 1.3503).
Australian Dollar – 0.9300
Initial support at 0.9092 (Nov 6 low) followed by the 0.9026 (Nov 5 low). Initial resistance is now at 0.9329 (Oct 21 high) followed by 0.9476 (Jul 08 high).
Gold – 1103
Initial support at 1087 (Nov 6 low) followed by 1080 (Nov 4 high). Initial resistance is now at 1129 (1026.60 plus 0.618 of 905.10-1070.80) followed by 1136 (1.618 retrace 930.34 – 1024.28 through 985).
Oil – 79.30
Initial support at 78.00 (Intraday Support) followed by 75 (key Level). Initial resistance is now at 80 (Intraday resistance) followed by 82 (Oct High).
