USD Remains Quite Positive Since Past Asian Session

Dollar remains quite positive since past Asian session, as appetite for riskier assets dilutes across the world: Asian stocks ended mostly negative, while Europe and U.S. futures are down since early Europe.

Gold also gave up ground, quoting around the $ 1090/oz level, favoring dollar gains. The metal has a monthly low at $ 1074.50, so that’s the support level to watch today, as $ 1103 area is first strong upside resistance zone.

Early data in Europe, show loans to households and companies in Europe posted their third straight annual decline in November as the economic slump curbed credit demand and made banks more reluctant to lend. Loans to the private sector fell 0.7% from a year earlier after a drop of 0.8 % in October, the European Central Bank said today.

EUR/USD remains under pressure, capped by the 1.4365 area, and pointing for a break under 1.4300, while Pound rebounded slightly to the upside after posting an intraday low of 1.5831.

British Pound/US Dollar Traded With A Low of 1.5865

The pound (GBP) suffered the most from the change in Dollar sentiment as the pair crashed from above 1.6000 to below 1.5900 for a 200 pip daily range. Sentiment is still very fragile for the pound and further losses are possible into the year end given the failed attempt to break back above the 1.6000 level. Overall the GBP/USD traded with a low of 1.5865 and a high of 1.6071 before closing the day at 1.5900 in the New York session.

The Australian Dollar (AUD) was second only to it's neighbour the New Zealand Dollar as risk was expressed through both these high yielding currencies. Expectations for a first half 2010 rate rise in New Zealand and three rate rises already this year in Australia have helped the two commodity currencies gain heavily this year. Overall the AUD/USD traded with a low of 0.8859 and a high of 0.8996 before closing the US session at 0.8940.

Oil & Gold (XAU) was relatively quiet having a small rally before retreating below the $1100 level in the US session. Overall trading with a low of USD$1096 and high of USD$1109 before ending the New York session at USD$1097 an ounce. Crude Oil had a flat day with the market consolidating recent gains. Crude Oil was up -$0.01 ending the New York session at $78.76.

Stock Market Indices Were Choppy All Day

Late Rollover Edges Indices Lower

The stock market indices were choppy all day. They opened strong, retested the highs, couldn't get through, tried again, but still couldn't get through 1130 on the S&P 500, which now has formed a 2-day triple-top there, and pulled back in the morning.

They tested support but held, and then bounced but without much thrust. In the last half hour they rolled over pretty hard into the negative column, but just slightly.

Net on the day the Dow was down 1.67 at 10,545.41, the S&P 500 down 1.59 at 1126.19, and the Nasdaq 100 down 6.16 at 1872.02.

Advance-declines were negative by less than 70 issues on New York and by 19 issues on Nasdaq. Up/down volume was about 3 to 2 negative on New York on very light total volume of about 600 million. Nasdaq traded about 1.1 billion and had about 6 to 5 negative volume ratio.

TheTechTrader board was mostly lower with a few gainers. The star of the day was low-priced China BAK Battery (CBAK), up 1.41 to 3.64, or 63 percent today.

Green Plains Renewable (GPRE) up 53 cents to 15.50, tagging 16 at one point, a new 52-week high. SmartHeat (HEAT) snapped back 24 cents to 14.60, and Nanometrics (NANO) moved up 19 cents to 11.92, but got as high as 12.45 earlier. Portfolio position Sourcefire (FIRE) gained 23 cents to 27.34.