AUDUSD: Australian businesses’ sales expectations surged to their most optimistic in a year for the first quarter of 2012, an industry survey released Tuesday showed. Financial markets are pricing in about an 80% chance of a cut as such a move would help affordability, given that more than 90% of Australian mortgages are priced at a variable rate.
Still, the improved index reading on profit expectations is just two points above the average of the past 10 years. Earlier this year, that reading turned negative for the first time in two years and it is now still about 20 points below what it was a year ago.
We expect a range for today in AUDUSD rate of 1.0380 to 1.0600 (Yesterday, we shorted the pair at 1.0700 ranges, the pair drop low at 1.0515, before crawling back. We continued to expect the pair to head further down toward 1.0380. We already closed our trade yesterday.)
If you intend to short the pair at the current market 1.0540-80 ranges
Stop loss at 1.0605
Target at 1.0480, 1.0420 and 1.0380
EURUSD: Advanced economies are looking at two years of weak growth and high unemployment, and the outlook is likely to worsen unless the euro zone fails to reign in its sovereign debt crisis
In a brief outlook published three days ahead of a meeting of the Group of 20 industrial and developing nations in Cannes, the OECD urged the European Central Bank to cut rates to restore growth in the world’s largest economic zone, and recommended other central banks to keep rates on hold and provide liquidity to the financial system to ease market tensions.
The euro suffered collateral damage from the yen’s swift plunge. Investors concerned about the euro in the face of the region’s debt problems had turned to the yen as a safer currency to hold. The U.S. currency climbed 1.2% to $1.3983 against the euro,
We expect a range for today in EURUSD rate of 1.3680 to 1.3930 (The pair might have a little support at 1.3830, fail to support will head to 1.3720 or 1.3680
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BUY stop at 1.3870 |
Limit BUY at 1.3680 |
USDJPY: The dollar jumped against a broad array of currencies after the Japanese government spent an estimated Y7 trillion — nearly $90 billion — on its first intervention since August. The dollar was recently at Y78.02, from a post-war low of Y75.31 before the intervention.
Japan’s intervention is likely to have a longer-lasting impact than a similar move in August, analysts said. The yen also plunged at that time, only to mount a full recovery to pre-intervention levels within a week.
We expect a range for today in USDJPY rate of 77.80 to 79.20 (Big win for us yesterday, after a week holding long on the pair where we bought last 76.20, the pair reach high at 79.40. We continued to expect the pair to head further north)
If you intend to entry at the current market price 78.20 ranges
Stop loss at 77.80
Target at 78.60, 79.20
