Australian FOREX Daily Outlook 25/09/2006

CURRENCY TRADING SUMMARY –25 SEPTEMBER06 (01:30GMT)

• U.S. Dollar Trading (USD) was slightly stronger against the majors in the Friday overnight foreign exchange trading session as the US weekly leading index fell. The index compiled by the Economic Cycle Research Institute fell from 136.5 to 135.6. With not much data released before and during the session, the market was caught range-bound. In other markets, the Dow Jones index fell by 25pts and the NASDAQ lost 18pts as market investors became increasingly wary of an apparent slowdown in US economic growth. Crude oil fell by US$1.04 to close at US$60.55 as plentiful supplies eased low inventory fears in the market. Looking ahead, existing home sales is due out today.
  

• The Euro (EUR) traded within a low of 1.2778 and a high of 1.2830, before closing at 1.2783 in the New York session. On the data front, industrial orders came in at 1.8%, better than the expected 1.2%. Looking ahead, German Regional CPIs are due out today.
  

• The Japanese Yen (JPY) traded within a low of 116.09 and a high of 116.61 versus the dollar, before closing at 116.56 in the New York session.

• The Sterling (GBP) traded within a low of 1.9002 and a high of 1.9061, before closing at 1.9010 in the New York session.
  

• The Australian Dollar (AUD) traded within a low of 0.7495 and a high of 0.7565, before closing at 0.7499 in the New York session.
  
• Gold (XAU) rose by US$7.10 to US$585.40 an ounce buoyed by renewed physical demand.

Initial support at 571 (Sep 15 low) followed by 561.0 (Jun 20 low). Initial resistance is now at 592.7 (Sep 22 high) followed by 595.35 (Sep 14 high).