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>

 

EURUSD

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 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.

 

 

AUDUSD

AUD/USD

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.

 

Gold

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.

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.