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MTECHTIPS:-Forex - USD/JPY jumps on retail sales news
The U.S. dollar continued to gain strength against the Japanese yen during Wednesday’s Asian on
the heels of retail sales data out of Japan.In Asian trading Wednesday, USD/JPY jumped 0.24% to
90.95 and traded as high as 91.03 earlier in the session. The 91 area is continuing to prove to be
stiff resistance for the greenback against the Japanese currency.Earlier Wednesday, Japan’s
Ministry of Economy Trade and Industry said December retail sales there fell to a seasonally
adjusted rate of 0.4% following an increase of 1.3% in November. Analysts had expected retail sales
to fall at annual rate 0.3% in December.The greenback’s strength against the yen could be a sign
that traders are beting that yet another discouraging Japanese economic could open the door for
swifter monetary easing. Earlier this month, the Bank of Japan disappointed financial markets when
it committed to Fed-style asset-buying, but BoJ said it would not launch that program until
2014.While the tumbling yen is viewed as a positive for Japanese exporters, it can have the opposite
effect for multinationals doing business in Japan. With U.S. companies in the middle of earnings
season, some marquee names have cited increased currency volatility as a reason for lower profits.
That list includes some firms that do significant business in Japan including Coach (NYSE: COH)
and McDonald’s (NYSE: MCD).

MTECHTIPS:-Forex - AUD/USD falls following Gillard comments
The Aussie dollar traded modestly lower against its U.S. rival during Wednesday’s Asian session
after Australian Prime Minister Julia Gillard said the strong Aussie is beyond the control of the
government.In Asian trading Wednesday, AUD/USD fell 0.02% to 1.0473. The pair was likely to find
support at 1.0404, the low of January 25 and resistance at 1.0488, the high of January 4.On
Tuesday, the Aussie gained against the greenback after the National Bank of Australia said that its
index of business confidence improved to 3 in December from a reading of minus 9 the previous
month.In a separate report, the Conference Board said that its leading index for Australia lost 0.2%
in November, after a 0.2% rise the previous month Gillard is scheduled to give a speech today in
which she is widely expected to pressure the Reserve Bank of Australia to lower interest rates again.
RBA, Australia’s central bank, is scheduled to next meet on February 5. Most traders do not expect
a rate following that meeting, but further rate cuts this year seem to be a forgone conclusion.

MTECHTIPS:-Gold extends gains ahead of Federal Reserve decision, U.S.
Gold futures extended gains from the previous session on Wednesday, as investors looked ahead to
the conclusion of the Federal Reserve’s policy meeting later in the day.On the Comex division of the
New York Mercantile Exchange, gold futures for April delivery traded at USD1,667.85 a troy ounce
during European morning trade, up 0.3% on the day.Prices rose by as much as 0.4% earlier in the
session to hit a daily high of USD1,669.65 a troy ounce, the strongest level since January 25.
Gold prices were likely to find near-term support at USD1,647.05 a troy ounce, the low from January
8 and resistance at USD1,685.35, the high from January 24.Gold traders looked ahead to the
outcome of the Fed’s policy-setting meeting later Wednesday, for further hints on the future of its
ultra-loose monetary policy.Investors will also be anticipating preliminary data on U.S. fourth quarter
economic growth, as well as Friday’s U.S. nonfarm payrolls report, as markets attempt to gauge the
strength of the U.S. economic recovery.Any improvement in the U.S. economy could scale back
expectations for further easing from the Fed, boosting the U.S. dollar and weighing on greenback-
denominated commodity prices.

MTECHTIPS:-Crude        oil futures trade near 4-month high ahead of U.S. data,
Crude oil futures traded just below the previous session’s four-month high on Wednesday, ahead of
the release of U.S. growth and employment data and the outcome of the Federal Reserve’s Open
Market Committee.Traders also looked ahead to closely-watched weekly supply data on U.S.
stockpiles of crude and refined products from the U.S. Energy Information Administration later in the
day.On the New York Mercantile Exchange, light sweet crude futures for delivery in March traded at
USD97.53 a barrel during European morning trade, little changed on the day.New York-traded oil
prices held in a tight trading range between USD97.31 a barrel, the daily low and a session high of
USD97.68 a barrel. Oil futures hit USD97.82 a barrel on Tuesday, the strongest level since
September 17.Market participants were looking ahead to a series of major U.S. economic events,
including preliminary data on U.S. fourth quarter growth and the outcome of the Federal Reserve’s
policy setting meeting later Wednesday.

MTECHTIPS:-Copper climbs to 4-week high ahead of U.S. growth data,
Copper futures rallied to a four-week high on Wednesday, as appetite for riskier assets strengthened
ahead of the outcome of the Federal Reserve’s policy meeting and U.S. data on economic growth
later in the trading day.On the Comex division of the New York Mercantile Exchange, copper futures
for March delivery traded at USD3.726 a pound during European morning trade, up 0.9% on the
day.New York-traded copper prices rose by as much as 1% earlier in the day to hit a session high of
USD3.728 a pound, the strongest level since January 3.Market participants looked ahead to
preliminary data on U.S. fourth quarter economic growth later in the day, as markets attempt to
gauge the strength of the U.S. economic recovery.The U.S. was also to release data on January’s
ADP nonfarm payrolls, ahead of Friday’s government data on nonfarm payrolls.The Federal
Reserve’s policy-setting meeting on Wednesday will also be in focus, as markets search for clues
over the future of the central bank’s ultra-loose monetary policy.

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