CURRENCY TRADING SUMMARY –05 APRIL 07 (23:30GMT)
- U.S. Dollar Trading (USD) slid on Wednesday against most other majors. On the data front, fundamental trading was largely attributed to weaker than expected non-Manufacturing ISM being released at 52.4 (the lowest in four years) with most economists expecting a figure of 55. With such a poor figure, concerns were raised over a further slowing of economic growth, increasing prospects of lower interest rates. In
US Iran au se plenty if interest as focus lies on a slowing labour market. Economists expect a strong figure of 130k with the previous released at 97k. Unemployment Rate on Friday will add further focus to the labour market as 4.6% slightly higher than the previous figure 4.5%.
- The Euro (EUR) gained against the greenback, as poor data out of the
US New York
- The Japanese Yen (JPY) rallied against the USD on the back of poor ISM services report, after reaching five-week lows of 119.09. Overall the JPY traded with a range of a low 118.60 and a high of 119.09 before closing the day at 118.66.
- The Sterling (GBP) remained relatively steady as the BoE began its two day meeting with an announcement expected later today. Overall, the
Sterling traded with a low of 1.9719 and a high of 1.9774 before closing the day at 1.9753 in theNew York
- The Australian Dollar (AUD) was subject to a sharp plunge on the back of RBA cash rate remaining unchanged at 6.25%. Upon the dust settling focus immediately shifted on May meeting with markets even more confident, pricing in a 80% chance that the 0.25% rate increase will materialize. Overall the AUD traded with a range of a low 0.8066 and a high of 0.8194 before closing the day at 0.8184 in the
New York
- The South African Rand (ZAR) firmed slightly against the dollar on Wednesday on improved appetite for risk, yet gains were capped. The rand has benefited from renewed investor interest in riskier assets over the past week that has boosted most high-yielding currencies. Overall, the ZAR traded with a low of 7.1460 and a high of 7.1962.
- The Turkish Lira (TRY) firmed as much as 1 percent against the Dollar on Wednesday, reaching near 1 year highs following softer than expected inflation data. The lira strengthened to 1.3680 against the dollar, a peak not seen since May 2006, before easing back to close at 1.3715, still stronger than Tuesday’s close of 1.3820.
- Gold (XAU) rose on Wednesday in response to weaker USD. Gold rose by US$1.20 an ounce to US$678.60
TECHNICAL COMMENTARY
| Currency | Sup 2 | Sup 1 | Spot | Res 1 | Res 2 |
| EUR/USD | 1.3288 | 1.3318 | 1.3375 | 1.3402 | 1.3412 |
| USD/JPY | 117.20 | 117.72 | 118.65 | 119.10 | 119.51 |
| GBP/USD | 1.9544 | 1.9662 | 1.9765 | 1.9833 | 1.9917 |
| AUD/USD | 0.8036 | 0.8064 | 0.8195 | 0.8212 | 0.8300 |
| XAU/USD | 646.20 | 652.40 | 672.80 | 677.75 | 682.82 |
- Euro 1.3375
Initial support at 1.3318 (Apr 4 low) followed by 1.3288 (Mar 30 low) Former resistance of Mar 7 low). Initial resistance is now located at 1.3402 (March 30 high) followed by 1.3412 (Mar 22 high)
- Yen 118.65
Initial support is located at 117.72 (Apr 3 low) followed by 117.20 (Mar 30 low). Initial resistance is now at 119.10 (Apr 4 high) followed by 119.51 (61.8% ret of 122.20 to 115.50 decline)
- Pound – 1.9765
Initial support at 1.9662 (Apr 2 low) followed by 1.9544 (Mar 30 low). Initial resistance is now at 1.9823 (Apr 3 high) followed by 1.9917 (Jan 23 trend high)
- Australian Dollar – 0.8195
Initial support a 0.8064 (April 4 low) followed by 0.8036 (Mar 28 low). Initial resistance is now at 0.8212 (Dec 2, 1996 reaction high) followed by 0.8300 (Psychological round number)
- Gold – 672.80
Initial support at 652.40 (Mar 19 low) followed by 646.20 (Mar 16 low). Initial resistance is now at 677.75 (Mar 28 high) followed by 682.82 (Trend-Line resistance)
