Forex-Metal Daily Analysis -06/06/2012

The Reserve Bank of Australia lowered the interest rate by 0.25 % points – to 3.5 %.


Asian and European trading sessions:

Euro: At the beginning of the Asian trading session the euro continued its third-day of rising in anticipation of a result of today’s G7meeting which would have been hold as a conference call between the Finance Ministers and the Central Bank Governors of the ‘ Group of Seven “. The EUR / USD pair grew up, updating the weekly maximum. However, the Euro resumed its major downtrend amid weak reports which were published today as well as on statements of the Minister of Finance of Spain, Cristobal Montoro who in his speech asked the European financial institutions to help Spain in recapitalizing its banking system. The published macroeconomic data came out much worse than expected. Indeed, the Retail Sales in the Euro zone fell to -2.5% versus the forecasted -1.1% and Germany’s Factory Orders fell to -1.9% vs. -1.1% in April in Month to Month term. The only one, the report on overall Purchasing Manager Index for the euro area went better than expected. The EUR / USD pair suffered big intraday loss falling to the area of $ 1.2408 during the European session.

US Dollar: The dollar became cheaper today relative to most major currencies on the background of decreasing demand for ” save heaven ” assets as well as the rising of the Asian stock markets. 
Australian dollar: The important news of today for the Australian currency was the decision of the Reserve Bank of Australia on interest rate in country. The RBA lowered the benchmark interest rate today by 0.25 % points – to 3.5 % per annum. Despite the fact, the currency grew up today against almost all its competitors. The 3.5% rate which the lowest since 2009 was lowered amid fears that the debt crisis problems in Europe and China’s economy slow down will put a negative impact on the Australian economy. Indeed, the Reserve Bank of Australia reduced its benchmark interest rate for a second consecutive month for the reason of supporting the development of the Australian economy which depends on growing of the commodity prices.

American trading session:

Japanese Yen: The yen fell against the dollar today after the leaders of the G7 group agreed to cooperate for preventing the excessive growth of the currency in the Forex market. The Japanese Finance Minister Mr.Jun Azumi noted that the recent growth of Japanese Yen as well as decline of the Japan’s stock market had a negative impact on the economy. 
Oil: The price of the July futures of WTI on the NYMEX today was kept in the range of $ 83.29 – $ 84.87 per barrel. The Oil traded in range due to the published today positive report on the index of activity in the services sector of U.S which showed an unexpected growth and continued to present the investors’ fears that the situation in the European economy would affect demand for Oil. 
Gold: Today, the June’s Gold futures on the COMEX traded around $1617, 9 per troy ounce. The Gold was trying to copy the Oil’s trading dynamics and traded mostly flat on the background of discussions of finance ministers and central bankers of the (G7) about the situation with the debt crisis in the euro zone, which threatens the whole World economy.


Technical analysis for 6/06


The pair is rolling back to 1.25690. 
Resistance: 1.25690, 1.26897, 1.28630 
Support: 1.23907, 1.21813, 1.19332 
The pair is aiming to 1.54842. 
Resistance: 1.54842, 1.56722, 1.58543 
Support: 1.53482, 1.52063, 1.50594 
The pair has tested channel line and rolling back to 0.95074. 
Resistance: 0.96220, 0.97427, 0.98512 
Support: 0.95074, 0.93949, 0.93069 
The pair is aiming to 79.070. Once this level is broken the pair will rise to 79.707. 
Resistance: 79.070, 79.707, 80.438 
Support: 78.345, 77.539, 76.463 
The pair has risen to 0.98436. If this level is broken the pair will rise to 0.99207. 
Resistance: 0.98436, 0.99207, 1.00067 
Support: 0.97423, 0.96579, 0.95611