Commodities continued to rally on Friday, in particular the industrial metals with copper up another 1.5%. This gave both the Aussie and the Loonie a shot in the arm of buying adrenalin. The US$ didn’t do much in particular however the euro and cable weakened against it, whilst yen and kiwi had minor gains. Stocks in the US also had a weak finish to the week, ending the worst week since the “sell in May” rout.
Not much out in the way of headline news apart from the now repetitive “tapering”. Like a broken vinyl record (anyone beside me remember them when they got scratched??) the “tapering” talk is having less of an effect as market comes to terms with its presence.
DATA HIGHLIGHTS AHEAD (times are in AEST) – 950am JAP GDP. 4am (Tue) US Budget Balance.
AUDUSD – Broke through long term fib and resistance to stop at 9217, the 78.6% retracement from July highs/Aug lows. Will be looking for sellers to come in around the 93¢ area.
Resistance: 9300/9390/9553 Support: 9138/9030/8845
EURUSD – A bearish but only inside bar. Seems the range is set, another seller bar on Monday will see opportunities to take this back to 1.30. Resistance: 13400/13700/14260 Support: 13206/13163/13040GBPUSD – Read the same as the euro, closing on its lows is true indication of seller dominance. Resistance: 15550/15608/15755 Support: 15200/15080/15000
NZDUSD – A slightly HH/HL but not a convincing day for the buyers. More chop coming up for the kiwi’s.
Resistance: 8050/8100/8161 Support: 7860/7710/7630
USDCAD – Despite more shocking economic data for the Canadians, in the form of unemployment, the Loonie strengthened against the greenback and crossing back below the 50ema. Resistance: 10525/10597/10677 Support: 10225/10100/10000
USDJPY – Another inside bearish bar as the ¥ continues to rally. Will test the 95 or even 94 in coming sessions. Resistance: 9765/9980/101.20 Support: 9580/9497/9393
GOLD – Pretty quiet day, but posted a HH/HL. Resistance: 1,354/1,425/1,489/ Support: 1,266/1,226/1,160