January 11th, 2012 Market Outlook
Currencies EUR/USD The 17-nation currency slid against most of its major peers before Spain and Italy sell securities this week amid concern the nations will struggle to meet funding needs. The euro lost 0.2 percent to $1.2755 as of 6:55 a.m. in London from yesterday in New York.
AUD/USD The Australian dollar declined, snapping two-day gain, as Spain and Italy prepare to auction debt this week amid concern their credit ratings may be cut. Australia’s dollar declined 0.3 percent to $1.0279 as of 4:30 p.m. in Sydney from yesterday in New York, when it appreciated 0.7 percent.
Commodities Oil traded near the highest settlement in almost one week as concern that supplies from Iran will be disrupted countered speculation Europe may enter a recession as it struggles to tame its debt crisis. Crude for February delivery was at $102.27 a barrel, up 3 cents, in electronic trading on the New York Mercantile Exchange at 3:13 p.m. Singapore time.
Gold futures extended sharp gains on Tuesday, trading at the highest level since mid-December as the euro's advance against the U.S. dollar boosted the appeal of precious metals. Gold futures were likely to find support at USD1,606.05 a troy ounce, the previous day's low and short-term resistance at USD1,645.65, the high of December 14.