Gold Tops $1200 an Ounce
CURRENCY TRADING SUMMARY – 2nd December (00:30GMT)
U.S. Dollar Trading (USD) never gained traction as global stocks markets roared back to life and risk was put ‘back on’. November ISM Manufacturing was weaker than forecast at 53.6 vs. 55.7 but this offset by October Pending Homes Sales at +3.7%. DJIA +126 points closing at 10471, S& P +13 points closing at 1108 and NASDAQ +31 points closing at 2175. Looking ahead, ADP National Employment forecast at -155k vs. -203k previously. Also released, Crude Oil Inventories forecast at -0.4% vs. 1% previously.
The Euro (EUR) was strong after testing support below 1.5000 in Early Europe went on to trade above 1.5100 resistance. EUR/JPY was extremely well supported in Asia on BOJ speculation and held those gains to close comfortably above 130. October German retail sales were +0.5% as forecast. Overall the EUR/USD traded with a low of 1.4970 and a high of 1.5119 before closing at 1.5090. Looking ahead, October PPI forecast at 0.0% vs. -0.4% previously.
The Japanese Yen (JPY) had a very eventful day as the BOJ held an unscheduled meeting and the this led USD/JPY to soar on speculation they would increase QE or cut rates from 0.1%. When they did neither the market was disappointed and bought back the Yen pushing the USD/JPY from 87.50 to 86.60. Crosses were all higher as risk appetite led by the AUD/JPY. Overall the USDJPY traded with a low of 86.26 and a high of 87.51 before closing the day around 86.65 in the New York session.
The Sterling (GBP) was bought aggressively in Europe as November Nationwide House Prices were +0.5% and continued to show a price recovery was in place in the UK housing sector. Cable finished above 1.6600 and was well supported at highs. Overall the GBP/USD traded with a low of 1.6389 and a high of 1.6650 before closing the day at 1.6620 in the New York session.
The Australian Dollar (AUD) had a volatile day as the RBA raised rates (0.25%) but left the door open for future pauses and this led the market to take profit until the start of Europe. As gold and US stocks rallied the pair found support and quickly resumed its uptrend pushing above 0.9200. Overall the AUD/USD traded with a low of 0.9104 and a high of 0.9273 before closing the US session at 0.9250.
Oil & Gold (XAU) finally traded above $1200 an ounce on USD weakness. Overall trading with a low of USD$1174 and high of USD$1202 before ending the New York session at USD$1195 an ounce. Oil tracked the rest of the market higher. Crude Oil was up $1.09 ending the New York session at $78.37.
TECHNICAL COMMENTARY
|
Currency |
Sup 2 |
Sup 1 |
Spot |
Res 1 |
Res 2 |
|
EUR/USD |
1.4828 |
1.4964 |
1.5080 |
1.5117 |
1.5144 |
|
USD/JPY |
84.83 |
85.87 |
86.70 |
88.01 |
88.63 |
|
GBP/USD |
1.6273 |
1.6381 |
1.6610 |
1.6647 |
1.6746 |
|
AUD/USD |
0.8947 |
0.9097 |
0.9250 |
0.9323 |
0.9406 |
|
XAU/USD |
1138.00 |
1164 |
1198.00 |
1201.00 |
1250.00 |
|
OIL/USD |
75.00 |
78.00 |
78.20 |
80.00 |
82.00 |
Euro – 1.5080
Initial support at 1.4964 (Nov 30 low) followed by 1.4828 (Nov 27 low). Initial resistance is now located at 1.5117 (Dec 1 high) followed by 1.5144 (Nov 25 high)
Yen – 86.70
Initial support is located at 85.87 (Nov 30 low) followed by 84.83 (Nov 27 low). Initial resistance is now at 88.01 (Oct 7 low) followed by 88.63 (Nov 25 High).
Pound – 1.6610
Initial support at 1.6381 (Nov 30 low) followed by 1.6273 (Nov 27 low). Initial resistance is now at 1.6647 (Dec 1 high ) followed by 1.6746 (Nov 25 high).
Australian Dollar – 0.9250
Initial support at 0.9097 (Nov 30 low) followed by the 0.8947 (Nov 27 low). Initial resistance is now at 0.9323 (Nov 25 high) followed by 0.9406 (Nov 16 high).
Gold – 1198
Initial support at 1164 (Nov 30 low) followed by 1138 (Nov 27 low). Initial resistance is now at 1201 (Dec 1 high) followed by 1250 (Key level).
Oil – 78.20
Initial support at 78.00 (Intraday support) followed by 75.00 (Intraday support). Initial resistance is now at 80 (intraday resistance) followed by 82 (Year highs).
