U.S. Dollar Trading was again weaker against the majors

CURRENCY TRADING SUMMARY
U.S. Dollar Trading (USD) was again weaker against the majors in the overnight foreign exchange trading session as the US ISM fell below 50 for the first time in over 3 years. The Institute for Supply Management survey of national manufacturing in November contracted to 49.5 from 51.2 previously, and compared to a 51.5 estimate. In other markets, the Dow Jones index fell by 27pts and the NASDAQ dropped 18pts after the release of the ISM index. Crude oil rose by US30c to US$63.43 a barrel as colder weather is expected in the US over winter. Looking ahead, pending home sales are due out tonight.

The Euro (EUR) traded within a low of 1.3220 and a high of 1.3349, before closing at 1.3333 in the New York session. Eurozone PMI manufacturing came in softer at 56.6 compared to a 57.1 estimate. Unemployment fell to 7.7% from a 7.8% estimate. Looking ahead, PPI is due out today.

The Japanese Yen (JPY) traded within a low of 114.97 and a high of 116.38 versus the dollar, before closing at 115.33 in the New York session.

The Sterling (GBP) traded within a low of 1.9635 and a high of 1.9849, before closing at 1.9904 in the New York session.

The Australian Dollar (AUD) traded within a low of 0.7875 and a high of 0.7926, before closing at 0.7887 in the New York session. Looking ahead, the RBA meet for their meeting on interest rates.

Gold (XAU) fell by US$2.30 to US$650.60 an ounce as investors took profit ahead of the weekend.

Euro 1.3345
Initial support at 1.3219 (Dec 1 reaction low) followed by 1.3132 (Nov 29 reaction low). Initial resistance is now located at 1.3404 (1.2456+ 1.382 of 1.1638-1.2324) followed by 1.344 (Mar 16, 2005 high).

Yen 115.25
Initial support is located at 114.97 (Dec 1 low) followed by 113.97 (Aug 4 low). Initial resistance is now at 116.57 (Nov 30 reaction high) followed by 117.12 (Nov 13 high).

Pound  1.9810
Initial support at 1.9635 (Dec 1 high) followed by 1.9434 (Nov 29 reaction low). Initial resistance is now at 1.9912 (1.618 projection of 1.8516-1.9182 from 1.8835) followed by 2.0 (Psychological round number).

Australian Dollar  0.7870
Initial support at 0.7817 (Nov 29 low) followed by 0.7762 (Nov 27 low). Initial resistance is now at 0.7927 (Dec 1 high) followed by 0.799 (Mar 8, 2005 high).

Gold  647
Initial support at 637.74 (Trend line support) followed by 633.0 (Nov 28 low). Initial resistance is now at 649.95 (Dec 1 high) followed by 656.2 (Aug 2 high).