Market review for 17.09.12: The Australian dollar fell amid escalating tensions between Japan and China.
Asian and European trading sessions:
Euro: After four days of growth the euro slightly fell against its competitors on the eve of tomorrow’s publication of the report of investors’ sentiment in Germany. The EUR / USD pair traded in the range of $ 1.3104-1.3140 during the Asian session. At the beginning of the European session there were attempts to push the currency lower amid conflict situation in Spain where the Spanish Prime Minister Mariano Rajoy noticed that Spain may need financial assistance. The market participants expect the meeting of the Prime Minister of Spain and the Prime Minister of Italy, Mario Monti which will be held in Rome on September 21. Also, the meeting of the German Chancellor Angela Merkel and the French President François Hollande will be in focus of the market players. The EUR / USD pair set its daily low at $1.3083 during the European session.
British Pound: The GBP / USD pair traded in a very narrow range of $ 1.6211-29 during the Asian session. At the European session the pair updated four month high reaching the $1.6241 area on optimism about the third round of quantitative easing from the Fed.
Japanese Yen: The yen rose against most major currencies, in anticipation of the two-day meeting of the Bank of Japan, which will begin on Tuesday. During the European session the pair resumed started on Friday uptrend and approached to the highs of Y78.455.
Australian and New Zealand dollar: The reason that the Australian dollar weakened against almost all major currencies was the mass unrest in China, which is the largest partner of Australia. There were demonstrations on Sunday on the background of escalating tensions between Japan and China over disputed islands, where participants demanded punishment for Japan. The Australian and New Zealand fell against the American dollar amid falling demand for higher-yielding assets.
American trading session:
Euro: The currency got strong intraday push and tested the reached Friday’s highs on the report of the Empire manufacturing activity index in the New York area, the result of which dropped in September more than expected due to decline in orders. The index declined to -10.41 versus -5.85 in August and forecasts of -2.00.
Gold: The Gold prices pulled back from the conquered on last week highs due to the promise of keeping the U.S. Federal Reserve interest rates low. The October futures price of gold fell to 1755$ per ounce on COMEX today.
Oil: The Oil suffered big intraday loss by falling by more than 4$ dollars during in an hour amid tensions in the Middle East. October futures price of WTI Oil reached $ 94.86 per barrel area.
Technical analysis for 18.09
EURUSD
The pair has reached Fibonacci 38% at 1.31197.
Resistance: 1.31674, 1.33143, 1.34882
Support: 1.30277, 1.28630, 1.26897
GBPUSD
The pair has broken 1.62050 and will try to reach 1.63316.
Resistance: 1.63316, 1.64636, 1.65706
Support: 1.62050, 1.60322, 1.58543
USDCHF
The pair has broken 0.93069, the next level is at 0.92026.
Resistance: 0.93069, 0.93949, 0.95047
Support: 0.92026, 0.91079, 0.89635
USDJPY
The pair is aiming to the Moving Average (200) at 79.070.
Resistance: 79.070, 79.707, 80.438
Support: 78.345, 77.539, 76.463
AUDUSD
The pair is rolling back to 1.04407.
Resistance: 1.05332, 1.06164, 1.07005
Support: 1.04407, 1.03535, 1.02558