Germany might be pulled deeper into the crisis as it looks set to assume too much financial responsibility without having sufficient control

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AUDUSD: The Australian dollar spiked higher against the dollar and the euro as the People's Bank of China cut its benchmark interest rates Thursday in an unexpected move.

The Australian dollar soared to its highest level since May 3 against the dollar to $1.0325, while the euro came very close to a new record low since the single currency's inception against the Australian dollar at AUD1.2133.

The PBOC cut the one-year lending rate to 0.31 percentage point and the one-year deposit rate to 0.25 percentage point, after also cutting rates in June.

We expect a range for today in AUDUSD rate of 1.0190 to 1.0320 (We got hit by stop loss at 1.0315)

We set limit BUY order for AUDUSD at 1.0190 (We currently holding the position)
Stop loss at 1.0130
Target at 1.0280 and 1.0350

EURUSD: Warned Saturday that Germany would drift into a deep depression if it exited the euro zone and re-adopted the D-Mark, calling on lawmakers to push forward with a stronger fiscal integration followed by the issuance of euro bonds.

Germany's gross domestic product could decrease by at least 10% annually for a few years or "25% in total over the next four or five years," German newspaper "Die Welt am Sonntag" cited Allianz's Chief Executive Michael Diekmann as saying in a pre-released interview of its Sunday edition.

His comments come after a group of influential German economists in the aftermath of the recent EU summit criticized that Germany might be pulled deeper into the crisis as it looks set to assume too much financial responsibility without having sufficient control.

We expect a range for today in EURUSD rate of 1.2200 to 1.2300

STAND ASIDE

USDJPY: U.S. banks' commercial and industrial loans increased $1.5 billion to about $1.437 trillion in the week ended June 27, the latest week for which information is available, the Federal Reserve said Friday.

That followed a $5.9 billion increase the previous week.

Jumbo certificates of deposit grew $23.1 billion to about $1.479.3 trillion in the latest weekly report, after falling $2.9 billion the previous week. Revolving home equity loans fell $1.1 billion to $536.9 billion after falling $800 million the previous week.

We expect a range for today in USDJPY rate of 79.30 to 79.90

We set limit BUY order for USDJPY at 79.45
Stop loss at 79.15
Target at 79.85 and 80.10


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