Market Insights 2 June 2011

Headlines

Markets reverse sharply lower after shock US jobs numbers

Risk aversion seen as Down drops over 200 points
AUD falls 150 pips to trade back at key support
EUR, GBP both sharply lower as USD strengthens
Gold only commodity to rise as markets see flight to safety
Key European markets closed tonight, with all eyes on tonight’s US jobs numbers at 10.30pm AEST

AUD/USD
Resistance
1.0715
Support
1.0580
Market Sentiment

Neutral

The AUD/USD rose again to 1.0750 only to slide with stocks and commodities in the American session to find support around
1.0600 area. Loss of 1.0580 support today is needed to confirm bearish continuation while today’s retail sales figures should
give us some more information as to where AUD is headed over upcoming sessions.

XAU/USD
Resistance
1551.00
Support
1526.00
Market Sentiment

Gold continues to draw strength from the weakness of the US economy and the possibility of QE3 market rumors. Traders
are looking to buy dips around 1530.00 level looking for next push higher. Only below 1525.00 would reverse bullish outlook.
 EUR/USD
Resistance
1.4385/90
Support
1.4310
Market Sentiment

Neutral

EUR was hit again overnight by yet another downgrade to Greece by rating agency Moody’s. While well bid during Asian and
European sessions hitting fresh four-week highs at 1.4450 a strong reversal led to pair to plunge nearly 150 pips. On a wider
scale 1.4270 area should provide good entry for the bulls while the bears will be looking to short around 1.4470.

GBP/USD
Resistance
1.6435
Support
1.6325
Market Sentiment

GBP turned lower across the board during European hours following weak economic data in the UK. As highlighted in
yesterday’s morning report a loss of 1.6300 is seen as a very bearish signal while only above 1.6500 area will reverse our
bearish outlook.

USD/JPY
Resistance
81.60/70
Support
80.60/70
Market Sentiment

Bearish

Yen soared overnight on “miles worse” than expected US data and increased safe haven demand. With indicators heading
south on both 1 and 4 hour charts a clear break below 80.60/70 support should extend the fall.
 AUD/JPY
Resistance
86.25
Support
85.70/75
Market Sentiment

Bearish

AUD/JPY made a sharp reversal overnight as investors fled from risk currencies and back to the safe haven of Yen seeing the
cross close 110 pips below it’s starting price on Wednesday. A break of overnight lows 85.70/75 level will be deemed
overwhelmingly bearish.

OIL
Resistance
102
Support
100
Market Sentiment

Bearish

Oil has managed to hold above US$100 over the last couple of hours but it desperately needs to maintain this level for the
bulls to stay in control. A move back below US$100 would be seen as bearish.

Economic Calendar & Pivot Points

F/Cast Last F/Cast Last
» AUD: Retail Sales 0.4% -0.5% » USD: Unemployment Claims 413K 424K
» AUD: Trade Balance 2.07B 1.74B »
» GBP: Construction PMI 53.7 53.3 »
» EUR: ECB President Trichet »

Pivot Points AUD/USD XAU/USD EUR/USD GBP/USD USD/JPY AUD/JPY CRUDE OIL
Open 1.0614 1539.21 1.0614 1539.21 80.89 85.85 99.98
R3 1.0875 1573.19 1.0875 1573.19 82.23 89.06 105.78
R2 1.0814 1561.81 1.0814 1561.81 81.87 88.33 104.54
R1 1.0715 1552.16 1.0715 1552.16 81.40 87.13 102.10
PP 1.0654 1540.78 1.0654 1540.78 81.04 86.40 100.86
S1 1.0555 1531.13 1.0555 1531.13 80.57 85.20 98.42
S2 1.0494 1519.75 1.0494 1519.75 80.21 84.47 97.18
S3 1.0395 1510.10 1.0395 1510.10 79.74 83.27 94.74

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