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 gains across the board amid elevated uncertainty and improving unemployment data.
  • AUD breaks parity due to steep falls in commodities.
  • ECB buys bonds heavily but Euro slumps nonetheless.
  • Spanish Bond auction finishes with yields of 6.975%. Economists deem 7% as unsustainable.
  • Dow Jones closes -135pts in the red. Gold, Oil & Copper fall over 3%.
  • Economic data releases very thin for next 24 hours

AUD/USD
The AUDUSD fell below parity overnight as European bond markets endured another difficult session.A breach of important support at 0.9975 could open up the possibility of a move to 0.9550 support.

GOLD

Gold came under intense selling pressure after numerous attempts to pierce 1800 level failed and investors lost confidence in uptrend and was further weighed down by Europe's sovereign debt woes.

EUR/USD
The EURUSD initially moved higher at the Australian close providing selling opportunities as suggested yesterday before continuing downward momentum to test support at 1.3420 which is still currently in place.

GBP/USD
The Cable was sidelined to mere spectator duties last night as the EUR lost all the ground.Still bearish sentiment abounds with 1.5700 support looking crucial.

USD/JPY
More consolidation overnight within a tight range but hovering just above support of 76.80 as a move lower looks the most likely outcome eventually.

SILVER
Silver took a hit overnight of USD 2.50 an ounce as investors took flight from all precious metals as they crumbled thru support levels established over the last 3 week rally.

USD/CHF
Again USDCHF continued its march higher overnight with this pair looking most likely to break higher thru resistance at 0.9225

GBP/JPY
An unusually subdued night for GBPJPY trapped within a tight range but looks like 120.80 support the side under pressure with the piercing of this level to yield much lower levels.

AUD/JPY
As suggested yesterday this pair continued lower with support at 76.30 next target. Any rallies towards 77.30 the obvious area to initiate fresh short positions. Let the trend be your friend on this pair.

OIL
Oil dropped USD 3.60 a barrel overnight to 98.80 on profit-taking from 5 months highs. The bullish picture however is still in place and these dips seen as good buying opportunities.

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