Australian Dollar Heads to Parity On Greek Worries
City Index May 9, 2012 1:00 PM
<p>Australian Dollar Heads to Parity On Greek Worries. The Australian dollar fell closer to parity weighed down by concerns about Greece’s political future, with speculation […]</p>
Australian Dollar Heads to Parity On Greek Worries. The Australian dollar fell closer to parity weighed down by concerns about Greece’s political future, with speculation that Greece may run out of money by the end of June.
Range: 1.2965 – 1.3003
Euro-dollar closed in NY at 1.30052, after the rate had seen lows in this session of 1.2983 before bouncing back to 1.3044 as market reacted to comments from Greece as parties there announced intentions as they tried to form a coalition to form a government. The rate managed to mark overnight highs at 1.3006 in opening trade before drifting back below 1.3000. Downside momentum picked up as Aussie broke below 1.0075, move taking out reported stops through 1.2980 before rate met support at 1.2965. The rate settled around 1.2970 ahead of the European open, with recovery efforts capped at 1.2975. Decent demand in the area between 1.2965-1.2960 with a notable bid ahead at 1.2970. Further demand seen into 1.2955-1.2950, barrier reported at 1.2950 with stops below. Resistance 1.3000-1.3005, 1.3015-1.3025 ahead of 1.3040-1.3045.
Range: 1.6129 – 1.6150
Cable closed in NY at 1.6156, as rate pulled back from recovery highs of 1.6168. The corrective pullback continued through Asia as rate, initially marked highs at 1.6159, eased to a low of 1.6129 as it tracked euro-dollar slippage, with euro-sterling diverting some of the pressure as it eased from early highs of 0.8050 to 0.8035. Cable settled between 1.6130-1.6140 into Europe, getting a lift toward 1.6150 in early trade, before once again settling back around 1.6135. Cable Support now seen between recent pullback lows of 1.6129-1.6124 ahead of stronger support between 1.6115-1.6100. Stops reside below. Resistance 1.6200 with interim interest seen into 1.6170 ahead of 1.6181. Euro-sterling bids 0.8035-0.8025 with resistance 0.8050, 0.8070-0.8080.
Range: 1,587.45 – 1,604.50
Gold dropped with risk assets as eurozone concerns lingered. The lack of clarity on Greece’s ability to form a coalition government and meet conditions of austerity measures as part of recent eurozone bailouts left gold prices below 1,600.00 at one point during the trading session. Lower crude oil prices may add pressure to the metal trading lower but emerging-market interest may surface at lower prices levels. Support levels are 1,585.58 and 1,569.07 with resistance showing, 1,600.00, followed by 1612.29 and 1628.80.
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