Australian FOREX Daily Outlook 04/07/2006

MARKET SUMMARY –4JULY06 (05:00GMT)

• The Dollar was mixed in the overnight session due to expected thin market trading ahead of the US Independence Day holiday. The US ISM manufacturing survey fell to 53.8 from 54.4 the previous month after the market had expected a lift to 55.0. In other markets, the Dow Jones index lifted by 78pts and the NASDAQ rose by 18pts in the shortened trading session ahead of the US 4^th of July holiday. Crude oil was buoyed by strong US demand finishing up US8c to US$73.93 a barrel.
  

• The Euro traded in a range of 1.2765 to 1.2821, before closing at 1.2803 in the New York session. On the data front, the Eurozone manufacturing PMI was higher to 57.7 in June from 57.0 previously. The market had expected a rise to 57.5. Looking ahead, PPI numbers are due out today.
  

• The Japanese yen traded in a range of 114.15 to 114.93 versus the dollar, before closing at 114.69 in the New York session.
  

• The Sterling traded in a range of 1.8388 to 1.8487, before closing at 1.8423 in the New York session. On the data front, UK PMI rose to 55.1 in June from 53.2 with the general market consensus predicting it would remain steady.
  

• The Aussie traded in a range of 0.7420 to 0.7436, before closing at 0.7426 in the New York session. Looking ahead, the Reserve Bank of Australia makes their interest rate announcement tomorrow.

• Gold continued to impress, rising US$8.00 to US$624.00 an ounce. Base metals apart from Nickel failed to impress, closing lower after profit taking ahead of the US holiday.