The Forex Market Insight Report shows charts on different major currencies and commodities, with brief commentaries on how new data releases and news cause movements in the market.

Headline:

  • Prospects of Moody’s placing US under review if no progress in their debt ceiling is made.
  • News that Euro zone officials have agreed in principal on a new 3 year plan for Greece.
  • World stocks markets collectively end lower.
  • AUD retail sales rose 1.1% in April beating the median forecast.
  • Crude Oil may fall on the back of ISM and ADP data out of the US tonight.

AUD/USD
AUD recovered its losses from yesterday placing the bulls in control after better than expected retail sales figures for month of April and a general risk on environment overnight. Price needs to overcome the 1.0710/15 static resistance level toconfirm continuation of uptrend.

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XAU/USD
We saw increased volatility overnight after poor US economic figures and a warning from Moody’s however the yellow metal remains strong and any weakness remains short lived as investors continue to diversify into Gold with all the uncertainty in the markets at the moment. Uptrend is still strong and any dips should be looked at as opportunities to get long.

EUR/USD
EUR surged higher during Euro and American sessions helped by both Trichet’s comments on Greece and Moody’s possible US downgrade. Next targets for the bulls are 1.4520 and then onwards to 1.4570. Those who missed to move last night will be looking to buy back in around 1.4350/70 level.

GBP/USD
The critical 1.6300 figure area highlighted in yesterday’s report held very firm overnight. While expected to consolidate during Asian session between 1.6340/80 those who believe this market to be in an uptrend will be hoping for a bullish break higher later tonight.

USD/JPY
USD/JPY continued to trade in a narrow 50 point range overnight between 80.60 and 81.10 as traders patiently wait for a clear break of either side before entering into fresh positions. The pair is showing increasing bearish momentum in the 4 hourly charts which should keep the upside limited but traders will favor playing the range for now.

AUD/JPY
From yesterday’s sharp reversal AUD/JPY is expected to remain under pressure over the upcoming sessions with traders looking to sell rallies into 86.40/70 area looking for a retest of 85.50.

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OIL
A Govt report out of the US pushed crude lower. Traders bought the dip, and prices returned back to the range of $US95 and $US105 that has held oil since Mid-may. OIL edged up today, rebounding from earlier lows and holding close to the key level of $US100 a barrel as traders await more signals on the strength of the US economy and a possible break of 101/103.20.

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Forex Market Insight 03 June 2011

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