By Easy-Forex | Daily Forex Analysis | Tue, Apr 03, 2012
U.S.
Dollar Trading (USD) the USD was under pressure overnight as risk
appetite picked up after stronger than expected manufacturing surveys
out of China and the US. US ISM Manufacturing rose to 53.4 vs. 52.4
previously. US construction data was weaker than expected falling -1.1%
vs. 0.6% forecast. Looking ahead, FOMC Minutes from the March Meeting.
The
Euro (EUR) the Eurozone showed the two speed nature of the global
recovery with March PMI fell to 47.7 vs. 47.6 previously. The Debt
crisis has forced European governments to pass Austerity budgets and
this has led to a severe contraction of economic activity and a likely
recession. The Sterling (GBP) the GBP/USD broke above 1.6000 once again
and this time closed above the key level with the UK manufacturing
survey avoiding the Eurozone slowdown to print a 52.1 vs. 51.6
previously. Looking ahead, February PPI forecast at 0.5% vs. 0.7% m/m.
March Construction PMI forecast at 53.5 vs. 54.3 previously.
The
Japanese Yen (JPY) the USD/JPY was the strongest hit by the USD
reversal falling down to Y82 as crosses as well reversed in a rare day
on Yen strength even as stocks rallied. The outlook is mixed with the
FOMC minutes tonight critical for the US monetary policy. Traders do not
fully believe the BOJ claims to keep doing extraordinary new measures
to support the economy going forward. Australian Dollar (AUD) the
AUD/USD opened up very strong after the Chinese PMI was stronger than
expected but from the Open we saw steady selling and by mid Europe we
had moved down to 1.0365. The US stock market rally allowed a rally back
above 1.0400 but the market is fragile. UPDATE the RBA holds at 4.25%.
Oil
& Gold (XAU) Gold pushed up to its next level near $1684 with the
$1700 now looming as significant resistance. Oil Rallied with the rest
of the market pushing higher on USD weakness and expectations that
global manufacturing was rebounding.
Pairs to watch
EUR/USD 1.3380 resistance critical
USD/JPY Dip below Y82 only stop hunt?
TECHNICAL COMMENTARY
Currency
|
Sup 2
|
Sup 1
|
Spot
|
Res 1
|
Res 2
|
EUR/USD
|
1.3192
|
1.3252
|
1.3335
|
1.3386
|
1.3486
|
USD/JPY
|
81.47
|
81.96
|
82.05
|
83.47
|
83.80
|
GBP/USD
|
1.5801
|
1.5842
|
1.6035
|
1.6000
|
1.6090
|
AUD/USD
|
1.0180
|
1.0305
|
1.0400
|
1.0470
|
1.0558
|
XAU/USD
|
1628.00
|
1642
|
1679
|
1684
|
1697
|
OIL/USD
|
100.00
|
102.00
|
104.90
|
105.00
|
106.00
|