COMMODITIES

Arab OPEC ministers began arriving in Cairo on Thursday ahead of talks expected to broach how high an oil price the world economy can stand as crude jumped to a more than two-year high above $91 a barrel.

EUR/USD gained ground on Tuesday and moved off an 18-day low it hit on Monday. The pair now has immediate resistance around 1.3285, a Fibonacci retracement level which comes just above 50-day and 100-day SMAs on 4-hour chart. RSI also suggests bullishness for the pair.

Gold prices will keep rising over the next two years to hit $1,600 per ounce by the end of 2011 and $2,000 by end of 2012, as fresh shocks to the global financial system are expected, an analyst has said.

The demand for gasoline might never get back to levels seen during 2006, as alternate forms of fuel gain more popularity, a report by AP said.

With war tensions in Korea strengthening the dollar and rating tensions in Ireland weakening the euro, EUR/USD continued southwards and touched an 18-day low on Monday.

Given the long-term importance of 1.53 area, chances of GBP/USD consolidating there until getting an opportunity to bounce back to 1.63 zone are high.

France's Total said on Friday it would spend C$1.75 billion ($1.8 billion) to forge a partnership with Suncor Energy in Canada's oil sands, the latest foreign push into a booming new source of oil wealth.

Halfway down a muddy slope in the Russian taiga, a team of welders shelters in a small tent to solder two giant steel pipes, bringing Russia 24 meters closer to its Asian oil El Dorado.

China has been on a commodity price-control overdrive in the past few months in a bid to tame inflation, allay fears of shortages and crack down on hoarding and price-gouging. However, the Chinese commodity boom may not last forever and the prices could likely fall, an analyst has said.

Edward Yardeni thinks copper prices can double in 2011 because there will be a shortage of it.

The Australian dollar that rose above parity on Tuesday helped by renewed risk appetite after the US Fed's decision to keep its accommodative policy intact for an extended period of time, but was down across the board in Asian trade on Wednesday as investors booked profit.

The British pound strengthened on Tuesday on a higher-than-expected inflation reading for November, with the sentiment also supported by a view that the US Federal Reserve may expand its bond buyback program at its monetary policy later in the day, supplying more dollars into the system.

USD/CHF fell below a channel support as concerns of the US Fed expanding its $600 billion bond buyback at a policy announcement later Tuesday. The pair extended its losses to hit its lowest in more than a month early in the day in Europe before recovering partly.

AUD/JPY jumped to a 7-month high on Monday but not broken the discipline of a broad upward channel it has been holding since end-May.

General Electric Co reached a deal to buy Wellstream Holdings Plc by raising its bid for the British oil drilling pipemaker by 6 percent to 800 million pounds ($1.3 billion).

General Electric could unveil a 755 million pound-plus ($1.2 billion) takeover of British oilfield services company Wellstream Holdings as early as Monday, the Financial Times said on Sunday.

Leading OPEC producer Saudi Arabia said on Saturday it still favored a $70-$80 price range for oil, a restatement of a two-year-old policy that will be welcomed by consumer nations worried that rising oil prices may get out of control and hamper global economic recovery.

Saudi Arabia said on Saturday that it still favored a $70-$80 range for oil, a restatement of a two-year-old policy that will relieve consumer nations worried that Riyadh might let oil prices get out of control and slow global economic recovery.

Higher-than-expected producer price index released Friday morning in London helped GBP/USD break above the key 1.5838 resistance to a 2-week high and is now targeting the 1.5952-1.5996 region.

On a 2-hour chart, EUR/USD has next support at 1.3141 (S1), as indicated by the 61.8 percent Fibonacci retracement from 1.3422 to 1.2970. A break below the same could take it to 1.3059 (S2) before retesting the November 30 low of 1.2968.

Despite a very strong jobs data early Thursday, the Austalian dollar looks less energized for a rally above Tuesday's high of 0.9964 to 1.0001, to complete the 'right shoulder' of a 'head and shoulders' pattern with 'head' at 1.0181 formed on November 5.

Crude oil futures advanced on Thursday as dollar weakened against major foreign currencies and stock markets rose after better-than-expected Japanese economic growth.

At 12:53 GMT, the pair was at 1.3212, off an intra-day low of 1.3179 and from its previous close of 1.3259. With no key data due from the US through the rest of the day, the pair is likely to hold above the 1.3157-1.2970 support region.

Crude oil futures declined for the second day on Wednesday as traders booked profits following a rally to $90.76 a barrel, the highest in 26 months on Tuesday, and on stronger dollar.

Brazilian central bank's commitment to keep currency volatility on check also suggests the market's likelihood to be bullish for the pair at the slightest of real-negative.

The pair seems to have a weak resistance around last week's high of 1.0064 (also 23.6 percent Fibonacci retracement from 1.1729 to 0.9463) and fresh dollar supportive could take it to 1.0331, the 38.2 percent Fibonacci.

After falling as low as 0.9779 from its previous close of 0.9827, AUD/USD is now targetting 0.9723 (S1) before hitting a relatively stronger support line at 0.9707 (S2).

Next target up for USD/CAD may be 1.0109 (R1) as suggested by the 38.2 percent Fibonacci retracement from 1.0285 to 1.0001, before a relatively stronger resistance near 1.0120 (R2).

Fundamentals for the commodity currency now back AUD/USD targeting 1.0006, as the 61.8 percent fibonacci from 1.0181 to 0.9723 projects.