Commodities Corner

Commodities Corner: Gold up testing $1100, Oil flat $74.

FXstreet.com (London) - Oil trading very thin as usual in Asian trade, with major players waiting for liquidity provided in Euro and US sessions. WTI/Brent now trading at $75/$72 approximately. Oil set back as risk aversion set in the market and players moved away from riskier assets. Dollar strength has also held oil down.

The energy, used primarily for automotive gasoline, has in the past months traded steadily up from just below 69$ to over $80 before cutting back on global tensions and a slower recovery in China. Notably crude oil still trading what OPEC has called a ‘comfortable’ level between $70 and $80.

Front month WTI currently trades at $74, having traded tightly range bound this session.

Gold bullion has firmed a little post its collapse in earlier US trade, when the precious metal fell straight through. The precious metal currently trades at $1098, rising in early Asian trade but without the enough depth to break $1100, where the metal currently consolidates.

Asian FX market wrap

Asian FX market wrap: majors trade sideways in quiet Asian session.

http://www.forexlive.com

Bernanke set to be reconfirmed as Fed chairman US bankers set to lobby for softer reform package Australian Q4 goods PPI -1.5% YoY No major rates or policy change expected from BoJ Asian regional stock markets regain early losses but still down 0.5% on average Gold adds $9 to $1099/oz There was some very early excitement in the market when JPY crosses jumped higher in early interbank trade after the Bernanke re-confirmation was all but assured but this gradually died down and we've had a very quiet session. Equity markets were down by almost 1.5% earlier in the session, following the Wall Street lead, but these losses have gradually been pared. EUR/USD jumped early on the back of EUR/JPY buying but the pair has been unable to break above short term technical resistance at 1.4180. Range: 1.4135/73. USD/JPY closed in NY at 89.90 but also jumped early on the Bernanke talk. The session high of 90.33 was made in early interbank trade. Heavy stop-loss buy orders are anticipated on a break above 90.65. Range: 89.84/90.33 The GBP has been quiet also, mainly following the EUR/USD around. The cross is sitting below decent resistance at 87.90 and stops are anticipated on a break above 88.00. Real money bids are seen in the cable close to 1.6000. Range: 1.6092/1.6136. The AUD has been slightly more volatile than the others with AUD/JPY again being the main driver. Range: .9015/76. Markets: Nikkei -0.3%, HK -0.5%, Kospi -0.3%. Gold +0.9% at $1099/oz.