MARKET SUMMARY –1JULY06 (05:00GMT)
- The Dollar fell across the board against the majors in Friday trade as the PCE deflator came in on expectation. The core personal consumption price index (PCE deflator) came in at 0.2% with an annual rate of 2.1%. Personal spending rose by 0.4% as well as personal income, however, personal spending came in right on expectations whereas personal income came in higher than the 0.2% expected. In other markets, the Dow Jones index fell by 41pts while the NASDAQ dropped by 2pts. Crude oil ended higher after a strong demand by US motorists ahead of the July 4th public holiday. Crude oil rose US33c a barrel to US$73.85. Looking ahead, ISM manufacturing is due out today.
- The Euro traded in a range of 1.2659 to 1.2788, before closing at 1.1.2790 in the
New York
- The Japanese yen traded in a range of 114.44 to 115.22 versus the dollar, before closing at 114.44 in the
New York
- The Sterling traded in a range of 1.8266 to 1.8497, before closing at 1.8485 in the
New York
- The Aussie traded in a range of 0.7411 to 0.7430, before closing at 0.7425 in the
New York - Gold rose by US27.10 to US$616.00 an ounce following the Federal Reserve hinting at a possible pause in rate hikes.
TECHNICAL COMMENTARY
| Currency | Sup 2 | Sup 1 | Spot | Res 1 | Res 2 |
| EUR/USD | 1.2515 | 1.2655 | 1.2785 | 1.2791 | 1.2809 |
| USD/JPY | 113.76 | 114.17 | 114.60 | 115.25 | 116.72 |
| GBP/USD | 1.7916 | 1.8090 | 1.8465 | 1.8561 | 1.8669 |
| AUD/USD | 0.7269 | 0.7378 | 0.7435 | 0.7453 | 0.7470 |
- Euro 1.2785
Initial support at 1.2655 (June 30 low) followed by 1.2515 (June 28 low). Initial resistance is now located at 1.2791 (June 30 high) followed by 1.2809 (Jun 8 high).
- Yen 114.60
Initial support is located at 114.17 (June 30 low) followed by 113.76 (38.2% retracement of the 108.98 to 116.72 rally). Initial resistance is now at 115.25 (Jun 30 high) followed by 116.72 (June 26 high).
- Pound – 1.8465
Initial support at 1.809 (June 29 low) followed by 1.7916 (61.8% retracement of the 1.7230 to 1.9027 rally). Initial resistance is now at 1.8561 (Jun 16 reaction high) followed by 1.8669 (0.618 of the 1.9027 to 1.8090 decline).
- Aussie – 0.7435
Initial support at 0.7378 (June 30 low) followed by 0.7269 (June 28 low). Initial resistance is now at 0.7453 (June 30 high) followed by 0.7470 (38.2% retracement of the 0.7795 to 0.7269 decline).
