USD/JPY Touches Key 90 Yen Level
U.S. Dollar Trading (USD) the Dollar was mixed overnight with stock markets surging to fresh highs after strong Weekly jobs data. Weekly Jobless Claims can in at 336k vs. 371k previously a very large drop historically and a good sign for the US economy. Profit taking in US stocks had limited the rally but overnight we saw the uptrend resume and risk flood back into the market. Looking ahead, January Michigan Consumer Sentiment forecast at 75 vs. 72.9.
The Euro (EUR) The EUR/USD broke back above 1.3300 and now will be targeting 1.3388 the year highs in coming sessions. Overnight we had confirmation that Greece would receive its next tranche of bailout aid which helped keep the single currency supported against most pairs with EUR/GBP and EUR/AUD the standouts.
The Sterling (GBP) was the weakest currency in the market overnight with the out of fashion Pound being sold through 1.6000 and struggling to bounce with the EUR/USD rally in the US session. GBP/JPY is still supportive on dips and is helping stem the GBP/USD downside move. Looking ahead, UK December Retail Sales forecast at 0.2% vs. 0.0% previously.
The Japanese Yen (JPY) USD/JPY surged to Y90 in a keenly awaited test of the major Psychological level. We have not broken the level so far in Asian trade on Friday as profit taking has capped so far but the trend is strong and we have fundamental reasons to sell the Yen ahead of the BOJ next week.
Australian Dollar (AUD) the AUD/USD was able to recover from awful jobs data on Thursday to bounce off the 1.0500 level to close back at 1.0550 after the US stock run. The daily range of the AUD/USD has been compressed lately and could be leading to a breakout with a fresh trend. Chinese data released in Asia Friday was stronger than expected and could help underpin. UPDATE AUSTRALIAN Chinese Q4 GDP came in at 7.9% vs. 7.4% previously.
Oil & Gold (XAU) XAU/USD had a very volatile trading day with a break to the downside proving a false break before a sharp rally to test $1700oz by the end of the US session. Oil resumed its uptrend breaking above $95 and testing $96 before small profit taking into the close.