Australian FOREX Daily Outlook 26/06/2006

MARKET SUMMARY –  26JUNE06 (05:00GMT)
                                                                     

• The Dollar continued to strengthen against the majors even in the face of a worse than expected durable goods orders, as the market factored in a possible rate hike by the US Federal Reserve in August as well as one later this week. US durable goods orders fell by 0.3% in May, whereas the market was expecting a rise of 0.5%. In other markets, the Dow Jones retreated 30 points after trading over a 100 point range, and the NASDAQ gave up 1.5 points. Crude oil prices remained relatively stable as higher US demand compared to a year ago helped to support current levels. Crude oil rose US3c a barrel to US$70.87. On the data front, US new home sales are due out today.
  
• The Euro traded in a range of 1.2479 to 1.2587, before closing at 1.2506 in the New York session. Looking ahead, the Eurozone current account is due out later today.
  
• The Japanese yen traded in a range of 115.77 to 116.59 versus the dollar, before closing at 116.55 in the New York session.
  
• The Sterling traded in a range of 1.8127 to 1.8312, before closing at 1.8280 in the New York session.
  
• The Aussie traded in a range of 0.7304 to 0.7349, before closing at 0.7318 in the New York session.
  
• Gold rose by US$2.60 to US$588.00 an ounce defying a weaker oil price and stronger greenback as the market covered their short positions ahead of the weekend.