CURRENCY TRADING SUMMARY –10AUGUST06 (05:00GMT)
- U.S. Dollar Trading (USD) was initially weaker against the majors in the overnight forex session before gaining lost ground before close of session, as investors expect the US Federal Reserve to leave rates on hold in coming months despite expected increases elsewhere around the world. In other markets, the Dow Jones index fell by 97pts and the NASDAQ remained relatively unchanged as slowing economic growth and higher oil prices weighed on the markets. Crude oil prices ended lower by US4c to US$76.35 a barrel as the
Prudhoe Bay oilfield is currently producing at 50% capacity. Looking ahead, US trade balance and initial jobless claims are due out today. - The Euro (EUR) traded within a low of 1.2766 and a high of 1.2901, before closing at 1.2860 in the
New York France - The Japanese Yen (JPY) traded within a low of 114.81 and a high of 115.73 versus the dollar, before closing at 115.35 in the
New York - The Sterling (GBP) traded within a low of 1.8975 and a high of 1.9110, before closing at 1.9048 in the
New York UK - The Australian Dollar (AUD) traded within a low of 0.7580 and a high of 0.7665, before closing at 0.7655 in the
New York
- Gold (XAU) rose by US$4.70 to US$652 an ounce strengthened by a weaker US Dollar bouncing off one week lows.
TECHNICAL COMMENTARY
| Currency | Sup 2 | Sup 1 | Spot | Res 1 | Res 2 |
| EUR/USD | 1.2737 | 1.2764 | 1.2870 | 1.2911 | 1.2935 |
| USD/JPY | 113.45 | 113.97 | 115.40 | 115.75 | 116.04 |
| GBP/USD | 1.8852 | 1.8971 | 1.9050 | 1.9146 | 1.9162 |
| AUD/USD | 0.7512 | 0.7565 | 0.7655 | 0.7684 | 0.7727 |
| XAU/USD | 631.00 | 635.65 | 651.00 | 656.20 | 658.96 |
- Euro 1.2870
Initial support at 1.2764 (Aug 9 low) followed by 1.2737 (38.2% ret 1.2456 to 1.2911 and approx Aug 3 low). Initial resistance is now located at 1.2911 (Aug 4 corrective high) followed by 1.2935 (Jun 6 high).
- Yen 115.40
Initial support is located at 113.97 (Jul 10 low and 50% ret 108.98 to 117.89) followed by 113.45 (Jul 10 low and 61.8% ret 108.98 to 117.89). Initial resistance is now at 115.75 (Aug 9 high) followed by 116.04 (Jul 28 high and 50% ret 117.89 to 114.17).
- Pound – 1.9050
Initial support at 1.8971 (Aug 9 low) followed by 1.8852 (Aug 4 low). Initial resistance is now at 1.9146 (Aug 8 high) followed by 1.9162 (Apr 29 corrective high).
- Australian Dollar – 0.7655
Initial support at 0.7565 (Aug 9 low) followed by 0.7512 (61.8% retracement of the 0.7405 to 0.7684 advance). Initial resistance is now at 0.7684 (Aug 2 corrective high) followed by 0.7727 (May 17 corrective high).
- Gold – 651
Initial support at 635.65 (Aug 9 low) followed by 626.7 (Jul 28 low). Initial resistance is now at 658.96 (76.4% retracement of the 676.35 to 602.66 decline) followed by 676.53 (Jul 17 high).
