Quiet Friday with US Holiday
CURRENCY TRADING SUMMARY – 6th July (00:30GMT)
U.S. Dollar Trading (USD) gave up some of the strength seen post Non Farm Payrolls after Japanese stocks and Oil rallied off lows. Trading was light however with the US away for July 4th holidays so markets will look to Monday to see if the bearish sentiment continues. Crude Oil down $1.30 at $65.30. In US share markets, markets closed Friday. Looking ahead, ISM Non-Manufacturing forecast at 45.9 vs. 44.
The Euro (EUR) pivoted the 1.4000 level in thin trade after bouncing off 1.3930 in Early Asia. Weak Oil and Stocks capped gains. Eurozone Retail Sales fell 0.45 in May, slumping to a -3.3% y/y. Overall the EUR/USD traded with a low of 1.3927 and a high of 1.4028 before closing at 1.3970. Looking ahead, July Sentix forecast at -24 vs. -27 previously.
The Japanese Yen (JPY) lost some strength as Nikkei rebounded off lows on Friday but is still on a bullish footing as it tracks Equity markets. USD/JPY pivoted the 96 level with USD strength supporting. Overall the USDJPY traded with a low of 95.70 and a high of 96.13 before closing the day around 96.05 in the New York session. Looking ahead, FX Reserves for June previously at 1024Bn.
The Sterling (GBP) dropped a cent as the pound came under pressure with traders looking to next weeks BOE meeting with the chance of a further expansion of Quantitative easing. Also weighing was weak Oil and stocks. Overall the GBP/USD traded with a low of 1.6301 and a high of 1.6432 before closing the day at 1.6330 in the New York session.
The Australian Dollar (AUD) was able to briefly trade above the 0.8000 level as the market rebounded from knee jerk selling after the non farm payrolls. Weak Oil and a softening equity market outlook is starting to turn sentiment but the key support level remains at 0.7780 on the downside. Overall the AUD/USD traded with a low of 0.7900 and a high of 0.8008 before closing the US session at 0.7970.
Gold (XAU) remained in a very tight range with trading light given the US holiday. Overall trading with a low of USD$928 and high of USD$935 before ending the New York session at USD$932 an ounce.
|
Currency |
Sup 2 |
Sup 1 |
Spot |
Res 1 |
Res 2 |
|
EUR/USD |
1.3749 |
1.3827 |
1.3960 |
1.4201 |
1.4268 |
|
USD/JPY |
93.86 |
94.88 |
95.90 |
97.19 |
97.89 |
|
GBP/USD |
1.6041 |
1.6189 |
1.6300 |
1.6745 |
1.6830 |
|
AUD/USD |
0.7630 |
0.7790 |
0.7945 |
0.8155 |
0.8263 |
|
XAU/USD |
912.00 |
923.00 |
930.00 |
948.00 |
965.00 |
Euro – 1.3960
Initial support at 1.3827 (Jun 29 low) followed by 1.3827 (Jun 22 low). Initial resistance is now located at 1.4201 (July 1 high) followed by 1.4267 (Jun 5 high)
Yen – 95.90
Initial support is located at 94.45 (Jun 1 low) followed by 93.86 (May 22 low). Initial resistance is now at 97.19 (Jun 19 high) followed by 97.89 (Jun 16 high).
Pound – 1.6300
Initial support at 1.6189 (Jun 18) followed by 1.6041 (Resistance Nov 6). Initial resistance is now at 1.6745 (Jul 1 Level) followed by 1.6830 (Fibo Level).
Australian Dollar – 0.7945
Initial support at 0.7790 (Jun 23 low) followed by the 0.7630 (May 19 low). Initial resistance is now at 0.8155 (Jun 30 high) followed by 0.8263 (Jun 3 high).
Gold – 930
Initial support at 923 (June 30 low) followed by 912 (Fibo level). Initial resistance is now at 948 (Jun 26 high) followed by 965 (June 10 high).
