Australian FOREX Daily Outlook 24/08/2006

CURRENCY TRADING SUMMARY –  24 AUGUST06 (05:00GMT)
                                                                     

• U.S. Dollar Trading (USD) strengthened slightly against the majors in the overnight foreign exchange trading session even in the face of weaker than expected homes sales data from the US. US existing home sales fell to 6.33million from a 6.55million estimate, and a previous result of 6.62million. In other markets, the Dow Jones index gave up 42pts while the NASDAQ fell by 15pts as a response to weaker housing data and a weaker oil price. Looking ahead, durable goods orders, initial jobless claims, and new home sales are due out tonight.
  
• The Euro (EUR) traded within a low of 1.2777 and a high of 1.2850, before closing at 1.2788 in the New York session. Looking ahead, the IFO business climate is due out today.
  
• The Japanese Yen (JPY) traded within a low of 116.11 and a high of 116.61 versus the dollar, before closing at 116.39 in the New York session.
  
• The Sterling (GBP) traded within a low of 1.8866 and a high of 1.8995, before closing at 1.8926 in the New York session. Looking ahead, UK GDP is due out tomorrow.  
  
• The Australian Dollar (AUD) traded within a low of 0.7615 and a high of 0.7670, before closing at 0.7620 in the New York session.      
  
• Gold (XAU) fell by US$1.00 to US$623.00 an ounce in relatively light trading.

• Euro 1.2785

Initial support at 1.2774 (Aug 23 low) followed by 1.2695 (Aug 15 low). Initial resistance is now located at 1.2941 (Aug 21 high) followed by 1.298 (Jun 5 trend high).

• Yen 116.40

Initial support is located at 115.82 (Aug 22 low) followed by 115.18 (Aug 17 low). Initial resistance is now at 116.85 (Aug 22 high) followed by 117.41 (Jul 25 high).

• Pound – 1.8920

Initial support at 1.8807 (Aug 21 low) followed by 1.8775 (Aug 18 low). Initial resistance is now at 1.8999 (Aug 21 high) followed by 1.9026 (Aug 16 high).

• Australian Dollar – 0.7625

Initial support at 0.7562 (Aug 17 low) followed by 0.7546 (38.2% retracement of the 0.7269 to 0.7717 advance). Initial resistance is now at 0.7673 (Aug 23 high) followed by 0.7702 (Aug 16 high).

• Gold – 622

Initial support at 613.9 (Aug 21 low) followed by 607.67 (Aug 18 low). Initial resistance is now at 633.1 (Aug 14 high) followed by 645 (Aug 11 high).