Markets await US Treasury Secretary
CURRENCY TRADING SUMMARY – 10th February 2009 (00:30GMT)
·U.S. Dollar Trading (USD) profit taking in Asia saw all the majors fall lower and the USD strengthen going into Europe. Stocks stabilized in the US session letting most pairs return to starting levels. The US Senate passed the first draft of the 2nd Stimulus package late in the day. Markets are in limbo awaiting the new US Treasury Secretary scheduled to speak about the banking bailout. Crude Oil closed down -$0.61 ending the New York session at $39.56 per barrel. In US share markets, the Dow Jones fell 9 points or -0.12% and the NASDAQ was flat. Looking ahead, IBD Consumer Sentiment for February previously at 45.4.
·The Euro (EUR) ended above the 1.3000 level but was rejected from the noted resistance at 1.3080. EUR/JPY was well supported rebounding from 117 to 120 in anticipation of the financial rescue plan from the US will stabilize the banking sector. The German Trade Balance shrank in December to 10.7B vs. 10.9B previously. Overall the EUR/USD traded with a low of 1.2875 and a high of 1.3092 before closing the day at 1.3010.
·The Japanese Yen (JPY) tested resistance above 92 early in Asia but smaller than forecast gains in Asian stocks and profit taking sent most crosses lower. The US session saw most pairs retrace losses with the market responded to a drop in risk aversion. December Machine Orders fell -1.7% vs. -16.0% the month before as manufacturing continued to shrink. Overall the USDJPY traded with a low of 90.90 and a high of 92.11 before closing the day around 91.40 in the New York session.
·The Sterling (GBP) inline with other majors slipped in Asia before recovering and extending gains in New York on better than expected results from Barclays Bank. Overall the GDP/USD traded with a low of 1.4704 and a high of 1.4984 before closing the day at 1.4890 in the New York session. Looking ahead, December Trade Balance forecast at -8.1bn vs. -8.33bn previously.
·The Australian Dollar (AUD) extended gains as stability induced traders to test the topside. Noted resistance at .6840 held firm though and market took profit to end just below the 0.6800. AUD/JPY once again provided direction tracking equity movements. Overall the AUD/USD traded with a low of 0.6630 and a high of 0.6849 before closing the US session at 0.6790. UPDATE Nab Business Confidence falls to record low of -32 in January.
·Gold (XAU) fell back below $900 an ounce as safe haven lost support across the board. Overall trading with a low of USD$891 and high of USD$911 before ending the New York session at USD$995 an ounce.
|
Currency |
Sup 2 |
Sup 1 |
Spot |
Res 1 |
Res 2 |
|
EUR/USD |
1.2748 |
1.2874 |
1.3000 |
1.3093 |
1.3179 |
|
USD/JPY |
89.21 |
90.74 |
91.40 |
92.42 |
92.87 |
|
GBP/USD |
1.4590 |
1.4702 |
1.4890 |
1.4986 |
1.5181 |
|
AUD/USD |
0.6476 |
0.6629 |
0.6770 |
0.6850 |
0.6876 |
|
XAU/USD |
889.00 |
891.00 |
894.00 |
919.00 |
924.00 |
·Euro – 1.3000
Initial support at 1.2874 (Feb 9 low) followed by 1.2748 (Feb 6 low). Initial resistance is now located at 1.3093 (Feb 9 high) at followed by 1.3179 (Jan 29 high)
·Yen – 91.40
Initial support is located at 90.74 (Feb 6 low) followed by 89.21 (Feb 5 low). Initial resistance is now at 92.42 (Feb 9 high) followed by 92.87 (0.764 of 94.64-87.13).
·Pound – 1.4890
Initial support at 1.4702 (Feb 9 low) followed by 1.4590 (Feb 6 low). Initial resistance is now at 1.4986 (Feb 9 high) followed by 1.5181 (Jan 12 high).
·Australian Dollar – 0.6770
Initial support at 0.6629 (Feb 9 low) followed by the 0.6476 (Feb 6 low). Initial resistance is now at 0.6850 (Feb 9 high) followed by 0.6879 (Fib projection 0.6249 to .7269).
·Gold – 894
Initial support at 891 (Feb 9 low) followed by 889 (Feb 3 low). Initial resistance is now at 919 (Feb 9 high) followed by 924 (Feb 5 low).
