23 December 2005, 09:44  US dollar weaker in Sydney afternoon, seen range bound into year-end

The US dollar was weaker against the major currency pairs, but it is expected to trade sideways for the remainder of the year in thin holiday trading, dealers said. They said trading interest has thinned as the Christmas holiday approaches while today's holiday in Japan reduced trade even further. At 2.22 am Sydney (0322 GMT) the euro was firmer at 1.1879 usd from 1.1869 in late Sydney morning trading while the dollar was lower at 116.50 yen from 116.68. Dealers said there is little risk for the US dollar to trade away from current levels over the week ahead. They said the only data of interest is tonight's release of US durable good orders for November with market expectations of a rise of 1.2 pct from a strong 3.7 pct in October, while the ex-transportation component is forecast to increase 1.0 pct from 0.6 pct previously. New home sales in the US for November are forecast to rise to 1.30 mln annually from 1.42 mln year-on-year to October. Dealers said the University of Michigan confidence survey for December is also due tonight, expected to rise to 89.0 index points from 88.7 in November. They said key data releases for the Japanese economy due next week may give an indication of the Bank of Japan's eventual end to a loose monetary policy and general strength of the Japanese economy.This includes December CPI data for Japan due on the holiday affected Tuesday, while Wednesday's industrial production, retail trade and labor data is not expected to shake the thin trading volumes and interest expected.

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