Oil drops heavily as Gustav fears fade
CURRENCY TRADING SUMMARY – 2ndSeptember 2008 (00:30GMT)
·U.S. Dollar Trading (USD) Public Holiday, big moves on Oil as Hurricane Gustav fails to make impact helped the dollar to make gains. Looking Ahead, Aug ISM expected to fall slightly to 49.7 vs. 50.0 previously. UPDATE OIL breaks below $110 a barrel
·The Euro (EUR) tracked Oil movements closely, weakening as Oil softened. German July retail Sales were confirmed as a weak -1.5% m/m. Eurozone PMI was confirmed at Overall the EUR/USD traded with a low of 1.4583 and a high of 1.4717 before closing the day at 1.4605 in the New York session. Looking ahead, July Eurozone PPI is expected to gain 1.3% in July.
·The Japanese Yen (JPY) continued to make gains against most currencies as the USD/JPY broke the key level of 108. Weak Japanese stocks weighed. Overall the USDJPY traded with a low of 107.63 and a high of 108.67 before closing the day around 108.20 in the New York session.
·The Sterling (GBP) broke through 180 as downside momentum accelerated. Overall the GDP/USD traded with a low of 1.7985 and a high of 1.8128 before closing the day at 1.8020 in the New York session. Looking ahead, Government Stimulus package is expected to be released.
·The Australian Dollar (AUD) weighed down by commodity sales and lack of support from the AUD/JPY. Overall the AUD/USD traded with a low of 0.8485 and a high of 0.8580 before closing the US session at 0.8485. UPDATE RBA cuts rates by .25%
·Gold (XAU) fell heavily as Oil continued to slide. Overall trading with a low of USD$817.20 and high of USD$835.30 before ending the New York session at USD$818 an ounce.
| Currency | Sup 2 | Sup 1 | Spot | Res 1 | Res 2 |
| EUR/USD | 1.4366 | 1.4440 | 1.4575 | 1.4728 | 1.4811 |
| USD/JPY | 107.29 | 107.63 | 108.10 | 108.80 | 110.29 |
| GBP/USD | 1.7754 | 1.7821 | 1.7915 | 1.8211 | 1.8344 |
| AUD/USD | 0.8173 | 0.8276 | 0.8495 | 0.8586 | 0.8694 |
| XAU/USD | 801.00 | 807.40 | 815.00 | 935.50 | 844.00 |
·Euro – 1.4575
Initial support at 1.4440 (Feb 7 low) followed by 1.4366 (Jan 22 low). Initial resistance is now located at 1.4728 (Sept 1 high) at followed by 1.4811 (Aug 26 high).
·Yen – 108.10
Initial support is located at 107.63 (Aug 29 low) followed by 107.29 (Aug 1 low). Initial resistance is now at 108.8 (Sep 1 high) followed by 110.29 (Aug 25 high).
·Pound – 1.7915
Initial support at 1.7821 (Apr 27 2006 low) followed by 1.7754 (Apr 21 2006). Initial resistance is now at 1.8211 (Sep 1 high) followed by 1.8344 (Aug 29 high).
·Australian Dollar – 0.8495
Initial support at 0.8276 (Sept 18 2007 low) followed by 0.8173 (Sep 10 2007 low). Initial resistance is now at 0.8586 (Sep 1 High) followed by 0.8694 (Aug 28 high).
·Gold – 815
Initial support at 807.40 (Aug 22 low) followed by 801 (Aug 20 low). Initial resistance is now at 835.5 (Sep 1 high) followed by 844 (Aug 28 high).
