Daily Forex Snapshots

Asian Session - Australian Retail Sales Improve

January 07, 2009 10:42 AM CET

G10 Advancers and Decliners vs USD

	CHF	1.54
	JPY	1.06
	DKK	0.83
	EUR	0.71
	SEK	0.36
	NZD	0.41
	NOK	0.22
	AUD	-0.02
	CAD	-0.15
	GBP	-0.65

Global Indexes

Current Level

% Change

Nikkei 225 Index	9,239.24	+ 1.74
Hang Seng Index	14,987.46	- 3.36
Shanghai Index	1,924.01	- 0.67
FTSE 100 Index	4,557.41	- 1.75
DAX Index	4,964.88	- 1.22
SMI Index	5,770.50	- 0.49
DJIA futures	8,879.00	- 0.78

World Markets

Current Level

% Change

Gold	863.08	- 0.09
Silver	11.37	- 1.01
VIX	38.56	- 1.33
Crude wti	48.20	- 0.78
USD Index	82.67	- 0.21

Todays Calender

Estimates

Country / GMT

Producer prices, % m/m	-1.2 ,4.3y	-0.8 ,6.3y	EZ / 10.00
BRC shop price index, % y/y	--	2.7	UK / 10.30
ADP private employment change, thous	-485	-472	US / 13.15

Currency Tech

AUDUSD
R 3: 0.7475
R 2: 0.7355
R 1: 0.7265
CURRENT: 0.7207
S 1: 0.7035
S 2: 0.6920
S 3: 0.6853

EURJPY
R 3: 129.70
R 2: 128.56
R 1: 127.40
CURRENT: 126.58
S 1: 125.18
S 2: 123.70
S 3: 122.57

USDSGD
R 3: 1.4972
R 2: 1.4905
R 1: 1.4895
CURRENT: 1.4748
S 1: 1.4675
S 2: 1.4503
S 3: 1.4330

Market Brief

The Usd was weaker in the Asian session, as concerns over upcoming US economic data took center stage. The EurUsd traded up to 1.3616 from 1.3450, while the UsdJpy dropped sharply in late session, trading from 94.00 to 93.00. The AudJpy, a current barometer for risk appetite, slipped to 67.00 support from 67.80, despite Nikkei being in positive territory and crude prices falling back to $48.53bll. European equity indexes are trading lower and US index futures are point to a weak open. Yesterday's release of the FOMC Dec 16th minutes highlighted that members were steadfast to holding Fed Funds low for an extended period. In addition, the minutes also exposed potential options the Fed may implement if conventional policy doesnʼt have the desired effect. We are expecting the Usd to be on back footing today, as US economic data comes into focus with the release of ADP employment survey ( a precursor to Fridays NFP).

Yesterday's Eurozone CPI estimate came below expectations at 1.6%y/y vs.1.8% exp. Inflation is expect to continue to drop in the first half of 2009. The combination of weak activity data and low inflation, along with recent dovish commentaries by ECB members, makeS us expect a 50bp cut at next week's ECB meeting, on a path to 1%.

In Australia, November's Retail Sales were released this morning and increased by 0.4% m/m, despite expectations of a -0.4% m/m decline. We have attributed the uptick to the RBA's aggressive rate cuts and declining fuel prices, which have supported spending.

German unemployment unexpectedly rose to 7.6% vs. 7.5% exp this morning, which confirms the downturn in wider economic activity has finally hit the resistant labour market.

ACM Advanced Currency Markets SA (hereinafter referred as ACM) is a professional financial intermediary, directly regulated by the Swiss Federal Department of Finance, Anti Money Laundering Control Authority. As forex specialist, ACM provides only currency trading via highly professional forex trading software. All customers are aware that this information or any part thereof has been prepared without taking account of your objectives, financial situation and/or needs. This information is not intended as personalized investment advice and does not constitute a recommendation. It is not an offer or solicitation of any offer to purchase or sell any financial instrument. The analysis is based on the information which ACM finds reliable and accurate, but ACM does not assume any responsibility for any material nor for the transactions made on the basis of the information or the estimates of the analysis. ACM cannot guarantee that these forecasts will materialize and cannot be held liable in any way for direct, indirect and/or consequential loss arising from any use of this information, document or its content. All opinions and estimates constitute ACM analysis as of the data and are subject to change without notice. ACM does not warrant the accuracy or completeness of information contained herein, such information is subject to change and is not intended to influence your investment decisions. Past performance is not a reliable indicator of future performance.