USD strengthens slightly against majors. Commentary from Europe looked at with interest. Gold rises.
CURRENCY TRADING SUMMARY –28 NOVEMBER 06 (23:30GMT)
- U.S. Dollar Trading (USD) recouped some losses against the majors in the overnight foreign exchange trading session as the US dollar stabilized after recent volatile moves. Comments from French Finance Minister Thierry Berton helped the greenback after he stated that it was important to be vigilant following the decline in the USD in the last few trading sessions. The Chicago MidWest index fell from 106.5 to 106.1 in October. In other markets, the Dow Jones fell by 158pts and the NASDAQ fell by 54pts as poor company results induced broad sell-off. Crude oil rose by US$1.06 to US$60.30 a barrel as the oil minister from Saudi Arabia commented that another production cut may be needed in December. Looking ahead, US Durable goods and existing home sales are due out tonight.
- The Euro (EUR) traded within a low of 1.3088 and a high of 1.3177, before closing at 1.3133 in the New York session. Comments from Eurogroup head Juncker showed that he was not worried about the Euro at current levels, and that he sees the critical level “lengths” away.
- The Japanese Yen (JPY) traded within a low of 115.41 and a high of 116.40 versus the dollar, before closing at 116.07 in the New York session. On the data front, Japanese retail trade came in at 0.1% for the year on a monthly basis compared to -0.1% estimate. Looking ahead, industrial production is due out tomorrow.
- The Sterling (GBP) traded within a low of 1.9308 and a high of 1.9468, before closing at 1.9373 in the New York session.
- The Australian Dollar (AUD) traded within a low of 0.7766 and a high of 0.7809, before closing at 0.7789 in the New York session.
- Gold (XAU) rose by US$11.60 to US$640.60 an ounce on the back of technical buying amid recent USD weakness.
TECHNICAL COMMENTARY
| Currency | Sup 2 | Sup 1 | Spot | Res 1 | Res 2 |
| EUR/USD | 1.2942 | 1.2980 | 1.3135 | 1.3168 | 1.3185 |
| USD/JPY | 115.18 | 115.38 | 116.05 | 116.83 | 117.12 |
| GBP/USD | 1.8984 | 1.9182 | 1.9380 | 1.9463 | 1.9551 |
| AUD/USD | 0.7705 | 0.7731 | 0.7785 | 0.7819 | 0.7843 |
| XAU/USD | 614.80 | 628.57 | 641.00 | 642.15 | 645.00 |
- Euro 1.3135
Initial support at 1.298 (Jun 5 high and former key breakout level) followed by 1.2942 (Nov 24 low). Initial resistance is now located at 1.3168 (Apr 27 high) followed by 1.3185 (76.4% retracement of the 1.3663-1.1638 decline).
- Yen 116.05
Initial support is located at 115.38 (Nov 27 low) followed by 115.18 (Aug 17 low). Initial resistance is now at 116.83 (Nov 23 low & neckline of head & shoulders pattern) followed by 117.12 (Nov 13 high).
- Pound – 1.9380
Initial support at 1.9182 (Nov 10, 2005 high) followed by 1.8984 (Nov 22 low). Initial resistance is now at 1.9463 (Nov 27 high) followed by 1.9551 (Nov 2004 high).
- Australian Dollar – 0.7785
Initial support at 0.7731 (Nov 23 low) followed by 0.7705 (Nov 22 low). Initial resistance is now at 0.7819 (Nov 27 high) followed by 0.7843 (Apr 29, 2005 high).
- Gold – 641
Initial support at 628.57 (Trend line support) followed by 614.8 (Nov 17 low). Initial resistance is now at 642.15 (Nov 27 high) followed by 645 (Aug 11 high).
