Bank downgrades knock Aussie

<p>The Australian dollar fell towards the end of the Asia session after Fitch downgraded the ratings of three Australian banks. EUR/USD Range: 1.3357 – 1.3384 […]</p>

The Australian dollar fell towards the end of the Asia session after Fitch downgraded the ratings of three Australian banks.

Range: 1.3357 – 1.3384
Support: 1.3325
Resistance: 1.3380

Euro-dollar closed in New York at 1.3370, having rallied strongly from a pullback low of 1.3270 to post extended recovery highs of 1.337-1.3347, having taken out the reported barrier at 1.3350. Trade in Asia consolidated this move with trade during the main part of the session contained within a range of 1.3365-1.3380 before dropping late on to 1.3357 into early Europe. German GDP released into early trade at 7am GMT (expectation -0.20% Q/Q) with actual inline at 0.2%. We are now looking at the weekend’s G20 meeting and next Tuesday’s ECB LTRO. Resistance remains at 1.3380, a break to turn attention on the larger barrier interest sitting at 1.3400. Expect decent defense selling ahead, a break to open a move toward 1.3436. Support seen back at 1.3350-1.3340, with stops placed on a break below. Next support seen at 1.3325-1.3320 ahead of 1.3305-1.3295 and 1.3270.

Range: 1.5724 – 1.5753
Support: 1.5725
Resistance: 1.5750

Cable closed in New York at 1.5740, having trailed euro-dollar’s stronger recovery extension to a session high of 1.5748, which in turn allowed the cross to extend its recent rise to 0.8500. Cable managed to step its way to an extended high of 1.5753 in early Asian dealing, again tracking euro-dollar while the cross was held below 0.8500. The rate drifted lower through the balance of the overnight session, touching a low of 1.5726 ahead of the European open. Euro-sterling trade consolidated its move between 0.8488/0.84985.

Cable offers remain at 1.5750-1.5755, a break of 1.5760 to open a move on toward 1.5776, with offers seen to 1.5780. Support seen at 1.5725-1.5715 ahead of 1.5700 and 1.5680.






Range: 1,775.27 – 1,782.04
Support: 1,772.80
Resistance: 1,787.50

Gold has been fairly steady in Asia this morning but is struggling to break through yesterday’s 1,787.50 highs despite a strong run up in crude oil prices. The metal has slipped back from highs of 1,782.20 to 1,775.10 in quiet trading, but remains on a firm footing as central bank demand and investor appetite remains steadfast. This week has seen some technical short covering which ramped the price back up through 1,750 on Tuesday and the trend remains intact despite this morning’s slippage. Schroder investment management are now looking for gold prices to rise in 2012 to possibly 2,500 with the bull run set to continue for another five to eight years. Support is seen at 1,772.80 and 1,749.35 with resistance at yesterday’s highs of 1,787.50 and the psychological 1,800 level which is also likely to attract option related interest.

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