AUDUSD: The Australian dollar was slightly lower late Thursday with market attention fixed on meetings of European central banks later today.
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. Due to this announce, the Aussie Dollar jump above 1.0315 before crawling back down.
Earlier Thursday, the Australian Bureau of Statistics reported Australia recorded a A$285 million trade deficit in May, about half that expected by markets participants. It was the fifth consecutive monthly deficit.
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
Stop loss at 1.0130
Target at 1.0280 and 1.0350
EURUSD: euro-zone finance ministers will meet to hammer out the details of a hard-fought agreement reached earlier this month at a key EU summit to shield the euro from the sovereign debt crisis.
European countries and agreed to create a European banking union, and make it easier for countries to tap the euro-zone bailout funds to prop up weak banks and buy government debt. In exchange, Ms. Merkel won an agreement to put major European banks under the supervision of the European Central Bank.
We expect a range for today in EURUSD rate of 1.2350 to 1.2460 (We was predicting that the EUR will fall, the pair was above 1.2500 when we place our limit order at 1.2420)
We re-BUY EURUSD at the current market price 1.2380 ranges
Stop loss at 1.2350
Target at 1.2460 and 1.2520
USDJPY: New borrowings at the Federal Reserve’s dollar-lending facility for major central banks totaled $2.560 billion in the week ended Wednesday.
The Federal Reserve Bank of New York said Thursday total borrowings from this facility stood at $27.969 billion, from $27.059 billion the week before.
The Fed’s dollar lending facility ensures the global financial system does not run short of dollar liquidity. Despite considerable financial turmoil in Europe, the facility has thus far seen light usage in recent months.
We expect a range for today in USDJPY rate of 79.50 to 80.10 (Cancel last week order)
We set limit BUY order for USDJPY at 79.45
Stop loss at 79.15
Target at 79.85 and 80.10
