U.S. Dollar Trading (USD)
The December nonfarm payroll gained +155k and the Unemployment Rate remained at 7.8% in figures released Friday. Stock markets climbed into the weekend and this inspired some USD selling with Gold particularly volatile. The FOMC minutes change of tune towards further QE sparked a sharp USD rally last week which will likely be tested in January. Looking ahead, no data tonight.
The Euro (EUR)
The bears tested the EUR/USD to test the 1.3000 psychological support which held and when US stocks rallied post NFP we saw a modest bounce back to 1.3080 in the major. Plenty of support is coming through the EUR/JPY cross which is getting bought aggressively on dips due to the BOJ outlook.
The Sterling (GBP)
The pound underperformed the euro with the EUR/GBP grinding higher but the general theme was the same with selling early in the day and a relief rally late in the US session. The outlook for 2013 will be greatly affected by the new BOE Governor Carney from Canada and whether the market is ready to test the US Fed on its monetary policy outlook. Looking ahead, December Halifax House Price forecast at 0 vs. 1 previously.
The Japanese Yen (JPY)
USD/JPY topped out at Y88.40 before falling sharply at the nonfarm payrolls number which disappointed a much higher rumor number. The fall proved short-lived with support at Y87.60 lifting the pair back above Y88 into the close. The recent rally is overbought but the trend is strong and still in play.
Australian Dollar (AUD)
The aussie received lots of support on Friday gaining across the board on the back of strong global stock markets. Resistance was found at 1.0480 but buying has resumed in Asia this morning and we have broken above 1.0500. Commodities have rebounded spectacularly in recent months with Iron Ore up over 70% since the 2012 lows.
Oil And Gold (XAU)
Gold traded in a wild range down to fresh trend lows under $1630 before rebounding after the US Jobs Data back above $1650. Oil traded back towards $93 resistance as "risk on" trading conditions remained.
Pairs To Watch
EUR/USD: 1.3000 to remain key?
USD/JPY: Trend to continue? Y90 Target?