Closed in NY at $1.3643, off extended highs of $1.3686

<p>  EUR/USD Range: 1.3628 – 1.3688 Support: 1.3628 Resistance: 1.3700 Closed in NY at $1.3643, off extended highs of $1.3686. Release of weaker than forecast Australian […]</p>




Range: 1.3628 – 1.3688
Support: 1.3628
Resistance: 1.3700

Closed in NY at $1.3643, off extended highs of $1.3686. Release of weaker than forecast Australian CPI data pressured Aussie-dollar lower, with react passing across to euro-dollar to ease rate to session lows of $1.3628 in the early trade. The pullback met sovereign demand interest which edged the rate higher through the session to an eventual high of $1.3685, just shy of the NY peak. A reported barrier at $1.3700 suggested to be attracting decent protective sell interest, with weight of offers around the $1.3685 area able to counter the move up and ease rate back to $1.3650. A late session  recovery saw rate edge to $1.3665 before rate settled between $1.3635/55 into Europe.





Range: 0.9927 – 0.9992
Support: 0.9900
Resistance: 1.0050
A weaker number led to a sharp sell-off to the low of $0.9926, before recovering quickly to $0.9950 as euro rallied and edging up further to $0.9973. Talk is of Asian sovereign bids now placed towards the low. Treasurer Wayne Swan warned reporters that inflation would spike in the March quarter as a result of the flooding, particularly affecting vegetable and fruit prices. Euro-Aussie opened at A$1.3673 and spiked to A$1,3752 following the CPI before backing off down through A$1.3700.



For much of yesterday’s session gold prices ticked higher, supported by Euro strength and a jump in demand for gold backed ETF’s. Gold surprisingly did not react to the Moscow bombing. Late into the session gold prices dropped sharply on heavy liquidation. The near term outlook for gold and other precious metals appears to be lower. From a technical outlook Gold in Euro terms broke EUR1000/oz on 21st Jan and has continued to slide. Further losses should be cushioned by emerging market demand, despite the inflationary pressures.

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