AUDUSD: An index of Australian job vacancies advertised on the internet rose by a seasonally-adjusted 2.6% in March from February to 225,200 vacancies.
Australia’s consumer price index rose 0.1% in the first quarter of 2012 from the fourth quarter of 2011 and rose 1.6% from a year earlier. Economists on average had expected the CPI to rise 0.6% from the previous quarter and to rise 2.2% from a year earlier.
The weighted median CPI rose 0.4% on quarter and rose 2.1% on year, while its trimmed mean CPI rose 0.3% on quarter and rose 2.2% on year. Economists had expected that an average of the two core measures of CPI to rise 0.6% on quarter and rise 2.4% on year.
We expect a range for today in AUDUSD rate of 1.0310 to 1.0420 (Previously bought at 1.0276 and closed 1.0330)
WE STAND ASIDE FOR AUDUSD
EURUSD: Germany released a cautious outlook on its economy Wednesday as it urged Europe to stick to tough austerity measures and called on the European Central Bank to scale back its activities to prop up beleaguered euro-zone countries.
The latest projections by the German government come as several European countries–including the U.K. and Spain–are sinking into recession. In addition, tough debt-reduction measures are forcing weak countries such as Greece even deeper into recession, sparking a debate over whether the German-led austerity solution for Europe’s debt woes is making matters worse.
The German government argues that its labor market reforms, wage restraint, and debt reduction over the past decade have laid the foundation for the relatively good economic health of the country now and that this should be a lesson for euro-zone countries struggling to reduce heavy debt loads.
We expect a range for today in EURUSD rate of 1.3150 to 1.3250 (Yesterday, we shorted EURUSD at 1.3220)
We SELL EURUSD at 1.3220 (continued to hold)
Stop loss at 1.3260 from
Target at 1.3150 to 1.3110
USDJPY: The release of the Fed’s quarterly economic projections comes in the wake of its decision to keep its monetary policy stance steady, as had been widely expected. The FOMC continues to expect that if the economy plays out in the way it expects, it will keep interest rates very low until sometime in late 2014. The FOMC is also carrying forward with its plan to sell short-dated bonds it owns to buy a like amount of longer-dated securities.
Nine of 17 members see interest rates at 1% or less at the end of 2014. Previously, nine members saw rates at 0.75% or less for the same time period.
Only four Fed officials now expect the Fed to wait for its first interest-rate hike until 2015, down from six in the January forecasts.
We expect a range for today in USDJPY rate of 80.50 to 81.80
We BUY USDJPY at 81.10 ranges (continued to hold)
Stop loss at 80.70
Target at 81.70-90
