Non-farm payrolls disappoint. ISM Services weaker. Greenback sold off.
CURRENCY TRADING SUMMARY –06 AUGUST 2007 (00:30GMT)
- U.S. Dollar Trading (USD) was softer with traders selling the Greenback against major currencies after economic data disappointed the markets. The all important Non-farm payrolls came in at 92k for the month of July when the market was expecting a number close to 130k. Unemployment was also weaker rising to 4.6% from 4.5% and the ISM non-manufacturing came in at 55.8 from an estimated 59 level. The Dow Jones took a plunge of 281pts while the NASDAQ gave up 64pts as market jitters about economic growth entered the markets. Crude oil prices dropped US60c to US$74.88 a barrel.
- The Euro (EUR) was stronger again against the USD on the back of the poor data releases on Friday and as Euro Zone retail sales and PMI came in line with expectations.
- Falls in equity markets in the
New York New York
- The Japanese Yen (JPY) strengthened against the USD as carry-trade unwinding entered an already nervous market on Friday. The plummet in US equities made matters worse. Overall, the USDJPY traded with a range of a low 118.16 and a high of 119.32 before closing the day at 118.26 in the
New York
- The Sterling (GBP) also gained against the weak Greenback helped in part by UK PMI services which came in high than expected. Further moves in cable were capped due to GBP/JPY selling which entered the market. Overall, the GBPUSD traded with a range of a low 2.0340 and a high of 2.0460 before closing the day at 2.450 in the
New York
- The Australian Dollar (AUD) was mixed succumbing to some selling pressure as AUD and NZD were sold off after some carry trade unwinding. Overall, the AUDUSD traded with a low of 0.8554 and a high of 0.8603 before closing the day at 0.8574 in the
New York
- Gold (XAU) fell modestly by US80c an ounce to US$683.60 as Gold took its cue from the pullback in commodities especially oil in general.
TECHNICAL COMMENTARY
| Currency | Sup 2 | Sup 1 | Spot | Res 1 | Res 2 |
| EUR/USD | 1.3567 | 1.3608 | 1.3810 | 1.3819 | 1.3853 |
| USD/JPY | 117.28 | 117.60 | 117.65 | 119.51 | 120.00 |
| GBP/USD | 2.0134 | 2.0180 | 2.0410 | 2.0462 | 2.0474 |
| AUD/USD | 0.8435 | 0.8491 | 0.8545 | 0.8605 | 0.8616 |
| XAU/USD | 653.80 | 657.16 | 672.50 | 676.77 | 687.40 |
- Euro 1.3810
Initial support at 1.3608 (July 30 low) followed by 1.3567 (Jul 6 low). Initial resistance is now located at 1.3819 (Aug 3 high) followed by 1.3853 (July 24 trend high).
- Yen 117.65
Initial support is located at 117.60 (Apr 19 low) followed by 117.28 (76.4% retracement of the 115.15 to 124.17 advance). Initial resistance is now at 119.51 (Jul 31 high) followed by 120.00 (Psychological resistance).
- Pound – 2.0410
Initial support at 2.0180 (Jul 30 low) followed by 2.0134 (July 30 low). Initial resistance is now at 2.0462 (Aug 3 high) followed by 2.0474 (61.8% of the 2.0656 to 2.0180 decline)
- Australian Dollar – 0.8545
Initial support a 0.8491 (Aug 2 low) followed by 0.8435 (61.8% retracement of the 0.8163 to 0.8875 advance). Initial resistance is now at 0.8605 (Aug 2 high) followed by 0.8616 (Jul 31 high)
- Gold – 672.50
Initial support at 657.16 (Jul 27 low) followed by 653.80 (Jul 9 low). Initial resistance is now at 676.77 (Jul 26 high) followed by 687.40 (Jul 24 high)
