Currency Updates:
U.S. Dollar Trading (USD) US economic data was generally quite positive on Friday and this allowed most risk assets to extend gains and the Dollar weakness to continue into the weekend. September ISM Manufacturing was at 54.4 vs. 54.5 expected. UoM Confidence was at 68.2 vs. 67 forecast. In US stocks, DJIA +41 points closing at 10829, S& P +5 points closing at 1146 and NASDAQ +2 points closing at 2370. Looking ahead, August Factory Orders Forecast at -0.4% vs. 0.1% previously.
The Euro (EUR) the Euro rally continued with concern about the US QE2 making the Euro the best alternative. EUR/GBP showed the strength of the single currency testing 0.8700 with EUR/JPY testing multi week highs at Y115. EUR/USD traded with a low of 1.3620 and a high of 1.3783 before closing at 1.3778. Looking ahead, October Sentix forecast at 8 vs. 7.6 previously. Also released, August PPI forecast at 0.1% vs. 0.25 m/m.
The Japanese Yen (JPY) the small range is highlighting the markets indecision with the next direction for the major with fears of BOJ intervention competing against USD weakness. Crosses are more interesting with AUD/JPY and EUR/JPY testing recent highs. Overall the USDJPY traded with a low of 83.16 and a high of 83.58 before closing the day around 83.28 in the New York session.
The Sterling (GBP) a mild rally failed to keep pace with the Euro as the Pound remains out of favor with investor given uncertainty about the UK&rsquo s own monetary policy. The Bank of England meet this week with focus on any change in the Asset Purchase Program. Overall the GBP/USD traded with a low of 1.5705 and a high of 1.5871 before closing the day at 1.5834 in the New York session.
The Australian Dollar (AUD) was strong breaking above 0.9700 as the risk asset of choice pushed higher. AUD/JPY buying and AUD/NZD strength helped lift but by far the biggest support is the ongoing speculation that Tuesday&rsquo s RBA meeting could result in another rate hike. Overall the AUD/USD traded with a low of 0.9637 and a high of 0.9750 before closing the US session at 0.9725.
Oil & Gold (XAU) fresh all time highs as the precious metal pushed towards $1320 before consolidating into the weekend. Overall trading with a low of USD$1308 and high of USD $1321 before ending the New York session at USD$1318 an ounce. Oil pushed higher on Chinese and US manufacturing growth data. WTI Oil Closed +$1.30 at $81.40 a barrel.
