AUDUSD: The Australian dollar was higher Wednesday ahead of expected moves in Europe to further bolster the region’s banks and ahead of an appearance later tonight by U.S. Federal Chairman Ben Bernanke before Congress.
Retail sales rose an expected 0.3% to a seasonally adjusted A$20.95 billion in January from December, the Australian Bureau of Statistics said Wednesday. Economists expected a 0.3% rise.
We expect a range for today in AUDUSD rate of 1.0700 to 1.0780 (the pair hit high 1.0860 which hit our stop loss before knock back down to 01.0730)
We re- shorted AUDUSD above 1.0730 ranges
Stop loss at 1.0780
Target at 1.690 and 1.0660
EURUSD: Europe is under pressure from governments around the world to increase the new fund, which currently has a planned capacity of EUR500 billion. But Germany, the biggest contributor, is reluctant to put up more money for the fund.
Eurogroup meeting scheduled before EU leaders meet here Thursday will focus on Greece. “We’ll discuss the developments in private-sector involvement; we will be evaluating whether or not the Greek government and Parliament have taken the necessary legislative decisions on priority actions,” he said. “The Greek authorities will have had to have implemented all the decisions that were taken.
We expect a range for today in EURUSD rate of 1.327 to 1.3380 (we expect the pair to head further south toward 1.3200 region before the new announce on Thursday)
WE AVOID THE TRADE TODAY
USDJPY: The recovery will continue on a “gradual sustainable course” over the current year and next as the unemployment rate continues to decline. The U.S. economy will likely grow 3% in both the current year and in 2013, and it’s likely the unemployment rate will move under 8% by the end of 2012
We expect a range for today in USDJPY rate of 80.80 to 81.60 (Yesterday, we short the pair at 80.60 and booked profit at 80.20.)
We set limit Short order for USDJPY at 81.60
Stop loss at 81.90
Target at 81.10 and 80.80
