U.S. Dollar Trading strengthened against the majors

CURRENCY TRADING SUMMARY
U.S. Dollar Trading (USD) strengthened against the majors in the overnight foreign exchange trading session as US payroll data beat expectations. US non-farm payrolls rose by 132k in November, beating estimates of 110k. US consumer sentiment however eased from 92.1 to 90.3 for December, where forecasters were expecting a level of 92. In an interview with CNBC, Treasury Secretary Paulson commented that China needs more foreign exchange flexibility. In other markets, the Dow Jones index posted a gain of 29pts and the NASDAQ rallied 9pts higher as the markets breathed a sigh of relief after the employment data. Crude oil fell by US46c to US$62.03 a barrel as traders felt confident that supplies would be adequate even with a possible production cut.

The Euro (EUR) traded within a low of 1.3190 and a high of 1.3365, before closing at 1.3203 in the New York session.

The Japanese Yen (JPY) traded within a low of 114.90 and a high of 116.51 versus the dollar, before closing at 116.38 in the New York session. Looking ahead, consumer confidence is due out today.

The Sterling (GBP) traded within a low of 1.9514 and a high of 1.9713, before closing at 1.9530 in the New York session.

The Australian Dollar (AUD) traded within a low of 0.7852 and a high of 0.7930, before closing at 0.7853 in the New York session.

Gold (XAU) fell by US$6.00 to US$631.00 an ounce as a response to a firmer greenback.

Euro 1.3165
Initial support at 1.3191 (Dec 8 low) followed by 1.3132 (Nov 29 reaction low). Initial resistance is now located at 1.3368 (Dec 4 high) followed by 1.344 (Mar 16, 2005 high).

Yen 116.40
Initial support is located at 114.43 (Dec 5 low & 50% ret. 108.98 to 119.90) followed by 113.97 (Aug 4 low). Initial resistance is now at 116.57 (Nov 30 high) followed by 117.01 (0.618 retracement of 118.61-114.43).

Pound  1.9505
Initial support at 1.9513 (Dec 8 low) followed by 1.9463 (38.2% retracement of the 1.8838 to 1.9849 advance). Initial resistance is now at 1.9729 (Dec 8 high) followed by 1.9849 (Dec 1 high).

Australian Dollar  0.7840
Initial support at 0.7836 (Dec 7 low) followed by 0.7817 (Nov 29 low). Initial resistance is now at 0.7933 (Dec 8 trend high) followed by 0.799 (Mar 8, 2005 high).

Gold  624
Initial support at 625.4 (Dec 7 low) followed by 614.8 (Nov 17 reaction low). Initial resistance is now at 641.1 (Dec 6 high) followed by 650.2 (Dec 1 high).