Daily Forex Snapshots

Asian Session - Big USD Advance to Start 2009

January 05, 2009 11:16 AM CET

G10 Advancers and Decliners vs USD

	AUD	0.30
	NOK	0.19
	GBP	0.10
	NZD	-0.13
	CAD	-0.80
	SEK	-0.88
	EUR	-1.54
	DKK	-1.57
	JPY	-1.87
	CHF	-2.76

Global Indexes

Current Level

% Change

Nikkei 225 Index	9,043.12	+ 2.07
Hang Seng Index	15,563,31	+ 3.46
Shanghai Index	1,880.72	+ 3.29
FTSE 100 Index	4,578.21	+ 0.36
CAC 40 Index	3,357.21	+ 0.22
SMI Index	5,712.78	+ 3.22
DJIA futures	8,950.00	- 0.08

World Markets

Current Level

% Change

Gold	863.80	- 1.36
Silver	11.19	- 3.28
VIX	39.19	- 2.02
Crude wti	46.90	+ 1.20
USD Index	82.70	+ 1.05

Todays Calender

Estimates

Country / GMT

Construction PMI, index	--	31.8	UK / 9.30
Total vehicle sales, mn (saar)	10	10.2	US / PM
Construction spending, % m/m	-1.3 ,-5.1	-1.2 ,-4.6	US / 15.00

Currency Tech

AUDUSD
R 3: 0.7355
R 2: 0.7238
R 1: 0.7162
CURRENT: 0.7108
S 1: 0.6920
S 2: 0.6853
S 3: 0.6799

EURJPY
R 3: 130.80
R 2: 129.70
R 1: 128.56
CURRENT: 127.32
S 1: 126.00
S 2: 125.35
S 3: 123.70

USDSGD
R 3: 1.4895
R 2: 1.4807
R 1: 1.4650
CURRENT: 1.4693
S 1: 1.4500
S 2: 1.4340
S 3: 1.4255

Market Brief

The Usd was stronger in the Asian session, as risk aversion roared back on the first real trading day of 2009. The EurUsd dropped suddenly from 1.3990 to 1.3600, while the UsdJpy spiked off the 91.80 support to 93.00. Early morning demand for USD followed a $310 billion Obama proposal. This saw an Asian central bank buying greenbacks against the Euro. Over the holiday season, global economic data continued to worsen, as Friday's US manufacturing ISM fell to a 28-year low of 32.4. We expect that, in the current environment, risk aversion trades will be dominant, as the participants are skittish in letting any market drops spiral into the losses witnessed in 2008. The rapid pullout from risky assets under duress will support the Usd and we caution traders in putting on risky trades, such as Jpy fueled carrys, which have seen some support in the first few days of trading. Equity markets, both in Asia and Europe, are firmer and US index futures are pointing to a lower opening. Commodities are mixed, with crude slightly higher and precious metals lower on light trading.

European session is on the light on the data side and will have participants watching the US economic numbers. The key data scheduled for release today are November's construction spending and December's vehicle sales. Both numbers are expected to show significant weakness. Friday's December NFP will be the first real test of the US economic condition of 2009 and markets are anticipating a massive -500k decline.

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.