Stocks fall as Personal Income drops
CURRENCY TRADING SUMMARY – 29th March 2009 (00:30GMT)
·U.S. Dollar Trading (USD) gained into the end of the week as the Euro plunged and Stocks came off the boil. Off concern were reports March was hard for banks. Economic data was mixed with Consumer Confidence (March) improving slightly to 57.3 vs. 56.6 previously. Also released, Personal Income (Feb) at -0.2% vs. -0.1% previously. Crude Oil closed down $1.96 ending the New York session at $52.38 per barrel. In US share markets, the Nasdaq was down 41 points or -2.63% whilst the Dow Jones down -148 points or -1.87%.
·The Euro (EUR) fell sharply as German Minister Steinbrueck commented that the Euro is at risk if all European nations don’t stick to the stability pact. European Industrial Orders (Jan) beat expectations at -3.4% but revisions in earlier months hurt sentiment. Overall the EUR/USD traded with a low of 1.3257 and a high of 1.3591 before closing the day at 1.3305. Looking ahead, March Economic Sentiment forecast at 65.5 vs. 65.4 previously.
·The Japanese Yen (JPY) fell heavily from the highs seen on Thursday as crosses came under pressure and risk aversion once again instigated Yen buying. USD/JPY finished above 98 but also dipped towards 97 intraday. 100 although relatively close has proven difficult to assault. Overall the USDJPY traded with a low of 97.10 and a high of 98.86 before closing the day around 98.04 in the New York session. UPDATE Preliminary Industrial Production -9.4% in February m/m.
·The Sterling (GBP) couldn’t escape the USD strength tracking the Euro lower. Hurting sentiment was the revision of Q4 GDP to -1.6% vs. -1.5% previously. EUR/GBP did manage to dip and supported the pound somewhat as the Euros losses outpaced. Overall the GBP/USD traded with a low of 1.4264 and a high of 1.4494 before closing the day at 1.4305 in the New York session. Looking ahead, Feb Mortgage Lending data forecast at 0.8Bn vs. 0.69Bn.
·The Australian Dollar (AUD) fell sharply as the ‘fast Euro’ was hit by risk aversion and AUD/JPY selling. 0.6900 offered little resistance with the Aussie falling toward the key 0.6840 support. Going forward concerns over the sustainability of the Equity rally and G20 outcomes will dictate direction. Overall the AUD/USD traded with a low of 0.6865 and a high of 0.7032 before closing the US session at 0.6920.
·Gold (XAU) gave up ground as the USD strengthened although support at $920 looked firm. Overall trading with a low of USD$918 and high of USD$937 before ending the New York session at USD$925 an ounce.
|
Currency |
Sup 2 |
Sup 1 |
Spot |
Res 1 |
Res 2 |
|
EUR/USD |
1.3249 |
1.3257 |
1.3285 |
1.3592 |
1.3678 |
|
USD/JPY |
95.43 |
96.92 |
98.20 |
98.97 |
99.68 |
|
GBP/USD |
1.4160 |
1.4268 |
1.4295 |
1.4494 |
1.4638 |
|
AUD/USD |
0.6852 |
0.6904 |
0.6930 |
0.7094 |
0.7142 |
|
XAU/USD |
883.00 |
917.00 |
925.00 |
936.00 |
945.00 |
·Euro – 1.3285
Initial support at 1.3257 (Mar 27 low) followed by 1.3349 (38.2% retrace 1.2457 to 1.3739). Initial resistance is now located at 1.3592 (Mar 27 high) at followed by 1.3678 (Mar 24 high)
·Yen – 98.20
Initial support is located at 96.92 (Mar 25 low) followed by 95.43 (Mar 23 low). Initial resistance is now at 98.97 (Mar 17 high) followed by 99.68 (Mar 5 high).
·Pound – 1.4295
Initial support at 1.4268 (Mar 27 low) followed by 1.4160 (Mar 19 low). Initial resistance is now at 1.4494 (Mar 27 high) followed by 1.4638 (Mar 26 high).
·Australian Dollar – 0.6930
Initial support at 0.6904 (Mar 25 low) followed by the 0.6852 (Mar 20 low). Initial resistance is now at 0.7094 (Mar 24 high) followed by 0.7142 (Jan 8 high).
·Gold – 925
Initial support at 917 (Mar 25 low) followed by 883 (Mar 18 low). Initial resistance is now at 936 (Mar 27 high) followed by 945 (Mar 26 high).
