US data supports Greenback into the weekend
CURRENCY TRADING SUMMARY – 28th July 2008 (00:30GMT)
- U.S. Dollar Trading (USD) slightly stronger stocks, improving US economic data and stable Oil prices all combined to give the USD a solid footing into the weekend. June Durable Goods Orders beat expectations at 0.8% m/m along with Core Orders at 2.0%. University of Michigan Consumer Sentiment showed a surprise jump to 61.2 from 56.2. New Home sales also beat forecasts falling 0.6% to 530K vs. expectations of 505K. In the U.S. share markets, the NASDAQ was up 30 points (1.33%) and the Dow Jones was up 21 points (0.19%). Crude Oil closed down $2.23 ending the New York session at $123.26 per barrel.
- The Euro (EUR) traded higher during the European session touching day’s highs after the market digested higher than expected German Import Prices of 1.5% vs. 1.0% forecast. The strong US data saw the Euro retreat to Asian lows. EUR/JPY rebounded strongly as equities turned positive. Overall the EUR/USD traded with a low of 1.5668 and a high of 1.5754 before closing the day at 1.5690 in the New York session. Looking ahead, German Consumer confidence seen at 3.5 down from 3.9 in July.
- The Japanese Yen (JPY) traded in very large range gaining during the Asian session as Core CPI came in at 1.9% (at expectations) and stocks were weak. Reversal of sentiment in the European session saw a large bounce and subsequent rally in all crosses especially the GBP/JPY. Overall the USDJPY traded with a low of 106.58 and a high of 107.95 before closing the day around 107.90 in the New York session.
- The Sterling (GBP) rebounded as 2ndQuarter GDP came in at expectations 0.2% and strong buying of the GBP/JPY supported. UK Hometrack House Prices showed another dip, falling to -4.4% y/y in July. Overall the GBP/USD traded with a low of 1.9840 and a high of 1.9978 before closing the day at 1.9915 in the New York session.
- The Australian Dollar (AUD) came under pressure as commodities continued to slide and the USD strengthened. Overall the AUD/USD traded with a low of 0.9545 and a high of 0.9609 before closing the day at 0.9560. Looking ahead, RBA Assistant Governor Debelle speaks tonight.
- Gold (XAU) traded in a relatively small range buoyed by an increase in US Durable Goods orders but capped by the strong USD. Overall trading with a low of USD$919.40 and high of USD$934.90 ending the New York session at USD$929 an ounce.
|
Currency |
Sup 2 |
Sup 1 |
Spot |
Res 1 |
Res 2 |
| EUR/USD |
1.5612 |
1.5629 |
1.5695 |
1.5799 |
1.5948 |
| USD/JPY |
106.08 |
106.58 |
107.95 |
107.99 |
108.59 |
| GBP/USD |
1.9754 |
1.9815 |
1.9885 |
1.9990 |
2.0077 |
| AUD/USD |
0.9404 |
0.9477 |
0.9530 |
0.9675 |
0.9794 |
| XAU/USD |
908.65 |
912.90 |
930.00 |
949.25 |
976.00 |
Initial support at 1.5629 (July 24 low) followed by 1.5612 (July 23 low). Initial resistance is now located 1.5799 (July 23 high) at followed by 1.5948 (July 16 High).
Yen – 107.95
Initial support is located at 106.58 (July 25 low) followed by 106.06 (July 22 low). Initial resistance is now at 107.99 (Jun 24 high) followed by 108.59 (Jun 16 high).
Pound – 1.9885
Initial support at 1.9815 (July 14 low) followed by 1.9754 (July 11 low). Initial resistance is now at 1.9990 (July 24 high) followed by 2.0077 (July 22 high).
Australian Dollar – 0.9530
Initial support at 0.9477 (July 9 low) followed by 0.9404 (Jun 18 low). Initial resistance is now at 0.9675 (June 17 low) followed by 0.9794 (July 22 High).
Gold – 930
Initial support at 912.9 (July 8 low) followed by 908.65 (Jun 19 low). Initial resistance is now at 949.25 (July 23 high) followed by 976 (July 22 high).
