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:

  • USD struggles as data shows yet again that the economy is not recovering well with a drop in house sales and weakening manufacturing data.
  • Commodities were under pressure again as the inflation outlook weakened on US data and demand for Oilwanes.
  • UK Retail Sales come out better than expected seeing GBP surge.
  • Linkedin IPO doubles in the first day of trade giving equity markets and risk currencies a boost.
  • US equity markets closed with the Dow up 0.36%, the S&P500 up 0.22% and Nasdaq finishing the session up 0.30%.

AUD/USD
AUD is slowly grinding higher as a weaker USD across the board is offset by the fact that commodities have struggled this week. However, traders still seem keen to trade from the short side unless we break up through 1.0710/20 region expecting at least one more push towards the 1.0500/20 lows next week.

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XAU/USD
Since earlier this week Gold has been trading in a wide range and traders seem to be waiting for the next move and go with it. The important levels to watch are 1505.00 on the topside which is expected to create a significantly bullish signal targeting 1520 and 1485 on the downside which could see 1470 tested quickly if broken.
EUR/USD
EUR continued to grind higher but we have now rejected from the important 1.4340/50 level which has caused traders to expect a short term reversal looking for a pullback towards 1.4250 support intra-day. The bearish sentiment is expected to continue if we break 1.4240/50 seeing 1.4100 being a target if this occurs. Only a break through 1.4360 changes sentiment.

GBP/USD
There was a slightly stronger than expected jump in retail sales released overnight and traders bought GBP aggressively up towards 1.6200/30 region and it has been supported since then. Traders are becoming quite used to mixed data out of the UK economy recently but are still holding bearish sentiment as the bonds still pricing in a waiting game from policy makers.

USD/JPY
USD/JPY continued higher last night but resistance was found towards the top of the trend channel around 82.20. Traders still have bullish sentiment but patience is expected and the buyers seem to prefer to wait for better levels rather than chase the market looking for a retracement back towards 81.00/20 before getting back into the market

AUD/JPY
AUD/JPY broke through 87.00 resistance but failed to go on with it and reversed quickly back towards the previous resistance (now support) at 86.70 where the buyer emerged again. From here traders are preferring to trade from the long side so long as we stay above 86.70 and are calling for 88.00 resistance to be tested early next week.

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OIL
Trading oil from the short side again paid dividends as the selling interest around at 101.00 provided solid resistance and it was quickly back down to 98.00 support on demand concerns. We open mid range however traders seem content to play iot form the short side and are expecting a test of the all important 95.50 support in the coming sessions
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