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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
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Strong Chinese data kicks 2012 off with a risk positive

Article By: ,  Financial Analyst
January 13, 2012 9:00 AM

GBP/USD
Range: 1.5332 – 1.5395
Support: 1.5270
Resistance: 1.5450
Sterling held the 1.5270 support level mentioned yesterday with the BOE keeping rates on hold as expected. The market expects further QE to be added in February or March after the MPC receives the inflation report. Yesterday saw an impressive position adjustment in euro/£ which kept cable below the resistance level of 1.5420-50 with the cross expected by traders so far to run out of steam towards the 0.8400-20 level. This morning see’s the release of the UK PPI data at 9.30.

EUR/USD
Range: 1.2808-1.2879
Support: 1.2650
Resistance: 1.2950
The single currency bounced back from the brink yesterday holding what is now a double bottom at 1.2660. Yesterday the Spanish and Italian auctions were well subscribed to, catching a short market and with the ECB remaining on hold this month along with a surprising weak reading in the form of US retail sales an aggressive short squeeze had traders running to cover shorts. Overnight the Euro received a further boost with reports in France’s Les Echos that a Greek debt deal could be reached by the end of next week. We have another Italian debt auction this morning and there is every chance we could trade higher if successful.

AUD/USD
Range: 1.0303-1.0351
Support: 1.0150
Resistance: 1.0420
On the JPY good demand is reported at 76.50 but if we see a weaker US trade balance this afternoon along with a weaker Michigan consumer sentiment then a US yield change could endanger this level. Today however, we switch this commentary to AUD from the JPY as the Yen price action remains somewhat boring. Indeed, thank you for your patience as our continual pieces on the USD/JPY appears to crushed the volatility in this pair now. The basic trading range seen by most traders in the AUD/USD pair is 1.0100-1.0400 with barriers reported on either side.

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