US Jobs Data rekindles market fear
U.S. Dollar Trading (USD)
U.S. Dollar Trading (USD) weakened across the board as the December Private ADP Jobs report suggested -693K job losses vs. -473K forecast. Stocks slumped on concerns the economic slowdown will be longer than first thought. Oil fell over 10% as Weekly Crude Oil Inventories jumped by 6.7Mln vs. 0.7Mln forecast. In U.S. share markets, the NASDAQ was down 53 points (3.23%) and the Dow Jones was down 245 points (-2.72%). Crude Oil closed down $-5.38 ending the New York session at $43 per barrel. Looking ahead, Weekly jobless claims are seen at 540K vs. 492K previously. Also released November Consumer Credit is seen at -0.5% vs. -3.5% previously.
European Euro
The Euro (EUR) was well supported as the market dumped US dollars. Gains were limited as Oil plunged. Eurozone Data was poor with German Unemployment jumping to 7.6% with Unemployment at 3.102 Mln in December. Pound strength saw the 90 level erased on the EUR/GBP. Overall the EUR/USD traded with a low of 1.3433 and a high of 1.3746 before closing the day at 1.3645. Looking ahead, German November Trade Balance is forecast at 14.5Bn vs. 15.8Bn. Eurozone Q3 GDP is forecast to be kept at -0.2% and the November Unemployment Rate is forecasted at 7.8% vs. 7.7% previously.
Japanese Yen (JPY)
The Japanese Yen (JPY) made solid gains against the Dollar as stocks slumped and fear entered the market. GBD/JPY and EUR/JPY managed small rallies as their respective majors gained but even these fell well off their highs. Overall the USDJPY traded with a low of 92.35 and a high of 94.14 before closing the day around 92.70 in the New York session.
Pound Sterling (GBP)
The Sterling (GBP) enjoyed a very solid rally breaking above 1.5000 and pushing up to mid 1.52’s before falling back as profit taking appeared before today’s BoE Interest Rate Meeting. EUR/GBP selling saw the GBP advance against all 16 of the most actively traded currencies. Overall the GDP/USD traded with a low of 1.4806 and a high of 1.5281 before closing the day at 1.5100 in the New York session. Looking ahead, Bank of England meeting widely expected to cut -0.5% to 1.5% from 2.0% previously.
Australian Dollar (AUD)
The Australian Dollar (AUD) tested Tuesday’s high after the terrible US data but risk aversion saw the AUD fall back to day lows. AUD/JPY selling remerged and steep falls in Oil and Gold weighed. Overall the AUD/USD traded with a low of 0.7094 and a high of 0.7268 before closing the US session at 0.7130. Looking ahead, Trade Balance is forecast at 2 Bln vs. 2.952 Bln.
Gold
Gold (XAU) crashed lower falling over $20 an ounce as Oil had one of its biggest falls on record. Ongoing concerns about commodity demand hurt sentiment. Overall trading with a low of USD$836.60 and high of USD$866 before ending the New York session at USD$840 an ounce.
Technical Analysis: Market Fear Rekindled By US Jobs Data
Euro (EUR)
Euro – 1.3610 : Initial support at 1.3431 (Jan 7 low) followed by 1.3312 (Dec 6 low). Initial resistance is now located at 1.3747 (Jan 7 high) at followed by 1.3963 (Jan 5 high)
Yen (JPY)
Yen – 92.70 : Initial support is located at 92.34 (Jan 7 low) followed by 91.80 (Jan 5 low). Initial resistance is now at 95.14 (Jan 7 high) followed by 94.63 (Jan 6 high).
Pound Sterling (GBP)
Pound – 1.5080 : Initial support at 1.4505 (Jan 6 low) followed by 1.4428 (Jan 5 low). Initial resistance is now at 1.5399 (76.4% retrace 1.5723 to 1.4351) followed by 1.5616 (Dec 18 high).
Australian Dollar (AUD)
Australian Dollar – 0.7105 : Initial support at 0.7034 (Jan 6 low) followed by the 0.6919 (Jan 2 low). Initial resistance is now at 0.7267 (Jan 5 high) followed by 0.7353 (Oct 7 high).
Gold (XAU)
Gold – 838 : Initial support at 836 (Jan 7 low) followed by 802 (Dec 11 low). Initial resistance is now at 870 (Jan 6 high) followed by 884 (Jan 5 high).
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