Overall, the major pairs saw some minor spikes in price as the new trading week began. During the session, Japan released a report detailing their preliminary gross domestic product which has been shown to have increased to 1.2 percent over analysts estimates of 0.7 percent.
The euro (Eur/Usd 1.4957) opened the new trading week 10 pips higher as the pair raced ahead to the R1 swing point at 1.4965 which stopped the pair in its tracks. The gap, although minor, may still be closed if the pair decides to test the 20 day moving average at 1.4885.
The pound (Gbp/Usd 1.6712) along with the cad has had the largest gap, by nearly 20 pips. The pair was also rejected from the R1 swing level at 1.6740 during the overnight session. Support for the pair lies at the 1.6630 level while 1.6850 is major resistance.
The aussie (Aud/Usd 0.9333) is the second pair to successfully close its gap during the overnight session. The pair is finding minor support at the 0.9330 area which is near the high from Friday and resistance for the pair is seen at 0.9365.
The cad (Usd/Cad 1.0503) had a large 20 pip gap at the start of trading but was the first pair to close the gap quickly. The pair spent last Friday in a steady downtrend after being rejected from the 20 day moving average.
The swissy (Usd/Chf 1.0089) and the yen had virtually no change from their closing prices on Friday. The swissy has spent the session strengthening and finding support near the 1.0085 level which coincides with the S1 swing level.
The yen (Usd/Jpy 89.47) is following the swissy in that it has spent the session strengthening after a dramatic fall last Friday. The pair has mild resistance at 89.80 while the most immediate support is at the 89.35 level.
Markets throughout Asia were trading in mixed fashion. The Japanese Nikkei was declining slightly at the start of the week by 17 points while the Australian S&P/ASX was advancing 29 points higher. There are more stocks declining on the Nikkei 225 than were advancing. Encouraging results from the retail sector in the US on Friday has helped exporters. Toyota Motors has advanced 0.30 percent while financials such as Mizuho Financial declined 2.23 percent.
Meanwhile, overnight the Cabinet Office in Japan has released the preliminary gross domestic product which has increased to 1.2 percent for the quarter, the second consecutive expansion after the nation's worst recession.
Also released was a report on the Rightmove house price index from the UK. This report has shown that home sellers have decreased their asking prices during November for the first time the previous three months. Demand for property has dropped as the year comes to a close.
The MSCI Asia Pacific Index has gaining 0.44 points or 0.37 percent during the session.
Overnight, the Japanese Nikkei has declined 17.65 points (0.18%) to 9,752.66. The Australian S&P/Asx was advancing 29.50 points (0.63%) to 4,735.90.
Crude oil was recently trading at $76.99 per barrel, higher by $0.64. The commodity found resistance near the 20 day moving average.
Gold was recently surging higher by $7.80 to $1,124.50. The precious metal has broken above resistance previously seen at the 1120 level.
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