FX Developments Ahead of New Home Sales - 23.3.2012

US Dollar The US dollar was trading weaker against the swiss franc, the Gold and the Japanese Yen but stronger versus the aussie and the Canadian dollar. Ahead of the New Home Sales data in the U.S, forecasts are at 326k, the Australian dollar versus the greenback dropped to the 1.0374 support level after it reached earlier today the 1.0450 resistance level. The Gold erased today the yesterday gains of the US dollar, rising to the 1658.62 resistance level. Looking at the chart, on the hourly timeframe the Gold is trading above the MA(10) and MA(20), however the precious metal has no clear trend and it appears reluctant in either uptrend or downtrend. Against the swiss franc the greenback has been trading in a range bound formation between the 0.9175 upper band and the 0.9076 lower band. The Japanese Yen fluctuated today against the greenback on speculation that the Japan’s central bank will boost stimulus measures. The US dollar versus the Yen rose earlier today to the 82.94 resistance level and then dropped below the previous support level at the 82.31, paring earlier gains. The greenback against the Canadian is trading at the parity for the time being at the 1.0001, rising earlier today 3-week high at the 1.0031 resistance level. Euro The Euro climbed against the dollar after falling for three days. The common currency reached the 1.3285 resistance level and then retreated to the 1.3221 support level, holding above the MA(20) and MA(10), it was lastly seen at the 1.3250 level. Against the Japanese Yen the Euro fell to the 108.93, while on Friday morning reached the 109.83 resistance level, demand for the Yen was stronger this week because of risk aversion indicated by lower US treasury yields. European equities dropped further on Friday as investors were concerned over the global growth outlook and pressure from peripheral countries as bond yields rose. Stocks were performing negative as 10-year Spanish and Italian bonds rose. The France’s CAC40 is now trading at the 3,432.68 level, negative by 1.15 per cent, the Germany’s DAX Index is now trading at the 6,947.05, lower by 34.21 points. The UK’s FTSE 100 Index is trading lower by 16.96 points or 0.29 per cent, at the 5,828.69 level.