Weak US Jobs hurt Dollar
CURRENCY TRADING SUMMARY –11th January (00:30GMT)
U.S. Dollar Trading (USD) weakened considerably across the board as December US jobs numbers missed forecasts. December Non Farms at -85k were expected at 0k. December Unemployment Rate remained at 10.0%. Adding to the USD weakness was the relative strength of the stock market after bad economic news. DJIA +11 points closing at 10618, S& P +3 points closing at 1144 and NASDAQ +17 points closing at 2317.
The Euro (EUR) the upside came squarely into focus with the market testing the upper end of the range. Holding the Euro back was the November US jobs revisions at +4k. Q3 EU GDP was unrevised at 0.4%. EUR/JPY spiked lower but recovered well into the US close on Buoyant Stocks. Overall the EUR/USD traded with a low of 1.4264 and a high of 1.4439 before closing at 1.4411.
The Japanese Yen (JPY) had a volatile day with Yen weakness in Asia being reversed from comments by PM Hatoyama that the government should not comment on FX. This came as the new MoF Kan stated that he would welcome more Yen weakness on Thursday. After the US jobs data the USD/JPY slumped back in the low Y92 region but was supported by the crosses. Overall the USDJPY traded with a low of 92.30 and a high of 93.76 before closing the day around 92.59 in the New York session.
The Sterling (GBP) gained against the USD but was volatile as market largely ignoring the Pound and going with the AUD and CAD to express risk. Weighing heavily was the GBP/JPY which suffered greatly with the USD/JPY pull back. Overall the GBP/USD traded with a low of 1.5917 and a high of 1.6110 before closing the day at 1.6029 in the New York session.
The Australian Dollar (AUD) made substantial gains against the greenback with market sentiment towards the Aussie still very strong. Helping the pair lift was the substantial gains in Commodities and EUR/AUD and GBP/AUD cross support. Overall the AUD/USD traded with a low of 0.9122 and a high of 0.9253 before closing the US session at 0.9242.
Oil & Gold (XAU) rallied $15 after the US jobs announcement to test the $1140 resistance level. Overall trading with a low of USD$1120 and high of USD$1140 before ending the New York session at USD$1137 an ounce. Made fresh multi month highs above $83 a barrel. Crude Oil was up $0.59 ending the New York session at $83.25.
TECHNICAL COMMENTARY
|
Currency |
Sup 2 |
Sup 1 |
Spot |
Res 1 |
Res 2 |
|
EUR/USD |
1.4218 |
1.4258 |
1.4470 |
1.4484 |
1.4536 |
|
USD/JPY |
91.52 |
92.11 |
92.35 |
94.07 |
94.57 |
|
GBP/USD |
1.5833 |
1.5897 |
1.6090 |
1.6154 |
1.6241 |
|
AUD/USD |
0.8939 |
0.9093 |
0.9305 |
0.9323 |
0.9406 |
|
XAU/USD |
1115.00 |
1140 |
1155.00 |
1169 |
1200.00 |
|
OIL/USD |
82.00 |
82.50 |
83.30 |
84.00 |
85.00 |
Euro – 1.4470
Initial support at 1.4258 (Jan 4 low) followed by 1.4218 (Dec 22 low). Initial resistance is now located at 1.4484 (Jan 5 high) followed by 1.4536 (Dec 17 low)
Yen – 92.35
Initial support is located at 92.11 (Jan 7 low) followed by 91.52 (Jan 6 low). Initial resistance is now at 94.07 (Aug 28 high) followed by 94.57 (Aug 26 high).
Pound – 1.6090
Initial support at 1.5897 (Jan 7 low) followed by 1.5833 (Dec 30 low). Initial resistance is now at 1.6154 (Jan 5 high) followed by 1.6241 (Jan 4 high).
Australian Dollar – 0.9305
Initial support at 0.9093 (Jan 5 low) followed by the 0.8939 (Jan 4 low). Initial resistance is now at 0.9323 (Dec 3 high) followed by 0.9406 (Nov 6 high).
Gold – 1155
Initial support at 1140 (previous resistance) followed by 1115 (Jan 5 low). Initial resistance is now at 1169 (Dec 8 high) followed by 1200 (Major level).
Oil – 83.30
Initial support at 82.50 (Intraday support) followed by 82.00 (Intraday Support). Initial resistance is now at 84.00 (Intraday resistance) followed by 85 (Major level).
