US Unemployment and Payrolls boosts dollar. All eyes on ISM services

U.S. Dollar Trading (USD)

U.S. Dollar Trading (USD) was volatile gaining against a number of majors as jobs data signaled the Feds rate cut earlier in the week may be nearing the end of the easing cycle. Non Farm Payrolls for the month of March came in well above expectations only losing -20K jobs, significantly higher than the forecasted loss of -78k jobs. Adding to the dollar sentiment was Unemployment Rate falling from 5.1% to 5.0% for the month. In U.S. share markets the NASDAQ was down by -3.72 (-0.15%) whilst the Dow Jones rose by 47.80 points (+0.37%). Crude oil rebounded trading up by US$ 3.80 a barrel to US116.32 as investors were buoyed by NFP data. Looking Ahead,Services ISM for the month of April is expected to be seen at 49 down from the previous 49.6.

European Euro

The Euro (EURO) continued its decline to six week lows versus the dollar hampered by growing expectations that recent rate cuts out of the U.S. may have run its course. The Euro was also hampered by German Retail Sales figures which came in below expectations. Overall the EURUSD traded with a low of 1.5361 and a high of 1.5498 before closing the day at 1.5416 in the New York session.

Japanese Yen (JPY)

The Japanese Yen (JPY) weakened to a 2 month high against the dollar as Jobs data aided a broad USD rally. Overall the USDJPY traded with a low of 104.36 and a high of 105.70 before closing the day at 105.25 in the New York session. Japanese markets will be closed on Monday

Pound Sterling (GBP)

The Sterling (GBP) weakened against the dollar, although managed to touch a five-week high against the Euro as weak UK housing data was largely ignored. Overall the GBPUSD traded with a low of 1.9707 and a high of 1.9897 before closing the day at 1.9739 in the New York session. UK markets will be closed on Monday due to Bank Holiday.

Australian Dollar (AUD)

The Australian Dollar (AUD) rose from lows in the European session, and was the best performing currency despite a broad dollar rally. The Aussie held firm as equity markets rebounded, whilst was boosted earlier with positive Retail Sales figures, coming in well above expectations at 0.5% for the month of March.

Gold

Gold (XAU) rebounded from four month lows as US jobs data boosted confidence in attaining long XAU positions. XAU traded with a low of 846.00 and a high of 858.75.

Technical Analysis: Latest Forex Currency Update

Euro (EUR)

Euro – 1.5450 : Initial support at 1.5361 (May 2 low) followed by 1.5342 (Mar 24 reaction Low). Initial resistance is now located at 1.5499 (May 2 high) followed by 1.5661 (Apr 29 high).

Yen (JPY)

Yen – 105.54 : Initial support is located at 104.34 (May 2 low) followed by 103.23 (Apr 29 low). Initial resistance is now at 105.71 (May 2 high) followed by 107.44 (61.8% retracement of the 114.66 to 95.76 decline).

Pound Sterling (GBP)

Pound – 1.9745 : Initial support at 1.9706 (May 2 low) followed by 1.9624 (Apr 30 low). Initial resistance is now at 1.9913 (Apr 29 high) followed by 1.9966 (Apr 28 high).

Australian Dollar (AUD)

Australian Dollar – 0.9360 : Initial support a 0.9272 (May 18 low) followed by 0.9249 (50% retracement of the 0.8953 to 0.9544 decline). Initial resistance is now at 0.9445 (May 1 high) followed by 0.9473 (Apr 30 high).

Gold (XAU)

Gold – 864.20 :
Initial support at 845.87 (May 2 low) followed by 845.80 (Former resistance Nov 8). Initial resistance is now at 881.90 (May 1 high) followed by 896.50 (Apr 25 high).