Daily Forex Snapshots

Asian Session: Japan’s trade deficit soars, Asia enters festive season lower.

December 22, 2008 11:05 AM CET

G10 Advancers and Decliners vs USD

	CAD	1.431
	CHF	1.414
	DKK	1.388
	EUR	1.370
	NZD	1.240
	AUD	1.198
	SEK	0.947
	GBP	0.698
	NOK	0.598
	JPY	0.05

Global Indexes

Current Level

% Change

Nikkei 225 Index	8723.78	+ 1.58
Hang Seng Index	14622.39	- 3.33
Shanghai Index	1987.75	- 1.52
FTSE 100 Index	4271.49	- 0.36
DAX Index	3203.93	- 0.68
DJIA futures	8556	+ 0.27
Nasdaq futures	1214.75	+ 0.31

World Markets

Current Level

% Change

Gold	849.65	+ 1.36
Silver	11.02	+ 1.24
VIX	44.93	- 5.09
Crude wti	42.84	+ 1.13
USD Index	80.497	- 0.99

Todays Calender

Estimates

Country / GMT

NZD GDP

-0.5%

-0.2%

NZD / 21:45

Currency Tech

AUDUSD
R 2: 0.7231
R 1: 0.7145
R 1: 0.6990
CURRENT: 0.6854
S 1: 0.6895
S 2: 0.6818
S 3: 0.6741

EURJPY
R 3: 129.69
R 2: 127.94
R 1: 127.35
CURRENT: 126.60
S 1: 124.45
S 2: 122.89
S 3: 122.22

USDSGD
R 3: 1.4956
R 2: 1.4675
R 1: 1.4562
CURRENT: 1.4458
S 1: 1.4274
S 2: 1.4182
S 3: 1.4084

Market Brief

This week’s opening is finally on par with expectations of a “Christmas” market – thin markets, little data and range bound price action. Japan managed to defy the continued spell of bad news this morning, the Nikkei 225 traded higher ( + 1.5% ) while the rest of Asia suffers losses. The dollar declined across the board as markets attempt to take a breather from the moves of late – to a more subdued end of year market – while investors, traders and stake holders take stock of a cataclysmic year.

The EURUSD traded a steady range of 1.3911 – 1.4048 this morning, while the USDJPY traded 89.10 – 90.24. We have seen a consolidation in currency market price action recently as the U.S Government rescues GM and Chrysler. While the world breathes a sigh of relief, it seems that the $17.4Bn bailout of the U.S Car industry may not suffice to secure the industry’s fate. Talks are now emerging on a possible extension package from the Canadian government – a country very much implicated in the North American car industry.

There is continued talk about further rescue and stimulus plans to be deployed by various large economies as prospects for 2009 remain bleak. With interest rates near Zero across the globe, monetary policy will now enter uncharted territory in dealing with an omnipresent and very much global financial crisis. The Japanese trade deficit hit record highs this morning, dropping 26.7% over one year – largely led on by slower demand from both China and the U.S.

The Australian market lost 1.6% on news that miner Rio Tinto will cut 10% of Iron Ore output, but power generator Babcock & Brown Power jumped on receiving takeover approaches. This confirms the decline in demand for all commodities – crude trading around $42.8.

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