Currencies strengthen against the greenback. ISM survey dips to 3.5 year lows.Oil up again.
CURRENCY TRADING SUMMARY –4 DECEMBER 06 (23:30GMT)
- U.S. Dollar Trading (USD) was again weaker against the majors in the overnight foreign exchange trading session as the US ISM fell below 50 for the first time in over 3 years. The Institute for Supply Management survey of national manufacturing in November contracted to 49.5 from 51.2 previously, and compared to a 51.5 estimate. In other markets, the Dow Jones index fell by 27pts and the NASDAQ dropped 18pts after the release of the ISM index. Crude oil rose by US30c to US$63.43 a barrel as colder weather is expected in the
US
- The Euro (EUR) traded within a low of 1.3220 and a high of 1.3349, before closing at 1.3333 in the
New York
- The Japanese Yen (JPY) traded within a low of 114.97 and a high of 116.38 versus the dollar, before closing at 115.33 in the
New York
- The Sterling (GBP) traded within a low of 1.9635 and a high of 1.9849, before closing at 1.9904 in the
New York
- The Australian Dollar (AUD) traded within a low of 0.7875 and a high of 0.7926, before closing at 0.7887 in the
New York
- Gold (XAU) fell by US$2.30 to US$650.60 an ounce as investors took profit ahead of the weekend.
TECHNICAL COMMENTARY
| Currency | Sup 2 | Sup 1 | Spot | Res 1 | Res 2 |
| EUR/USD | 1.3132 | 1.3219 | 1.3345 | 1.3404 | 1.3440 |
| USD/JPY | 113.97 | 114.97 | 115.25 | 116.57 | 117.12 |
| GBP/USD | 1.9434 | 1.9635 | 1.9810 | 1.9912 | 2.0000 |
| AUD/USD | 0.7762 | 0.7817 | 0.7870 | 0.7927 | 0.7990 |
| XAU/USD | 633.00 | 637.74 | 647.00 | 649.95 | 656.20 |
- Euro 1.3345
Initial support at 1.3219 (Dec 1 reaction low) followed by 1.3132 (Nov 29 reaction low). Initial resistance is now located at 1.3404 (1.2456+ 1.382 of 1.1638-1.2324) followed by 1.344 (Mar 16, 2005 high).
- Yen 115.25
Initial support is located at 114.97 (Dec 1 low) followed by 113.97 (Aug 4 low). Initial resistance is now at 116.57 (Nov 30 reaction high) followed by 117.12 (Nov 13 high).
- Pound – 1.9810
Initial support at 1.9635 (Dec 1 high) followed by 1.9434 (Nov 29 reaction low). Initial resistance is now at 1.9912 (1.618 projection of 1.8516-1.9182 from 1.8835) followed by 2.0 (Psychological round number).
- Australian Dollar – 0.7870
Initial support at 0.7817 (Nov 29 low) followed by 0.7762 (Nov 27 low). Initial resistance is now at 0.7927 (Dec 1 high) followed by 0.799 (Mar 8, 2005 high).
- Gold – 647
Initial support at 637.74 (Trend line support) followed by 633.0 (Nov 28 low). Initial resistance is now at 649.95 (Dec 1 high) followed by 656.2 (Aug 2 high).
